A ﬁnancial device designed to make unfriendly takeover attempts ﬁnancially unappealing, if not impossible, is called (a):
A) Golden parachute.
B) Standstill.
C) Greenmail.
D) Poison pill.
E) White knight.

Question

Quizplus · Accepted Answer

A poison pill is a financial device designed to make unfriendly takeover attempts financially unappealing, if not impossible. It may include provisions such as issuing new shares of stock to existing shareholders, making the acquisition more expensive, or allowing shareholders to buy additional shares at a discount, diluting the value of the acquirer's purchase.

A ﬁNancial Device Designed to Make Unfriendly Takeover Attempts ﬁNancially