In Canada, which of the following are possible defenses that a target firm can use against an unfriendly acquiring firm? The target firm may:
I.Sell the crown jewels.
II.Implement a white knight.
III.Implement a poison pill.
IV.Implement a no-shop clause.
A)I and III
B)II, III, and IV
C)I, II, and III
D)I, III, and IV

Question

Quizplus · Accepted Answer

I, II, and III are all recognized defensive strategies against hostile takeovers. Selling the crown jewels involves selling off key assets to make the company less attractive. Implementing a white knight strategy involves finding a more friendly company to acquire them instead. Implementing a poison pill makes the takeover less attractive or more difficult by diluting the shares or offering shares at a discount to everyone but the acquirer. A no-shop clause is typically part of merger agreements to prevent the target from seeking other buyers, which is not a defense against an unfriendly acquiring firm.

In Canada, Which of the Following Are Possible Defenses That