A bond that contains a put option that can be exercised only if an unfriendly takeover occurs is an example of a ____.
A) pacman defense
B) liability restructuring
C) poison pill
D) standstill option

Question

Quizplus · Accepted Answer

A poison pill is a strategy used by companies to deter or discourage hostile takeovers by making the company less attractive to the acquirer. In this context, a bond with a put option exercisable in the event of an unfriendly takeover acts as a poison pill by potentially imposing financial burdens on the acquirer.

A Bond That Contains a Put Option That Can Be