Large-scale efforts to make a firm less appealing in the midst of a potential merger are known as:
A)Proxy fights.
B)Leveraged buyouts.
C)Shark repellents.
D)Poison pills.

Question

Quizplus · Accepted Answer

Large-scale efforts to make a firm less appealing in the midst of a potential merger are known as poison pills. Poison pills are anti-takeover measures that make a company less attractive to potential acquirers. These measures can come in various forms, such as increasing the amount of outstanding shares, allowing existing shareholders to purchase more shares at a discounted price, or imposing other restrictions that make it more difficult or expensive for an acquiring company to take over.

Large-Scale Efforts to Make a Firm Less Appealing in the Midst