A corporation may overcome the resistance of a takeover target by implementing which of the following actions?
A) Buy the target company's preferred stock instead of its common stock
B) Reduce the price offered for the target company's stock
C) Threaten to fire the officers of the target company
D) Buy more of the target company's stock
E) File a lawsuit

Question

Quizplus · Accepted Answer

By buying more of the target company's stock, the acquiring corporation may increase its ownership percentage and gain more influence in the company. This could make it more difficult for other shareholders to resist the takeover bid. A and B are unlikely to overcome resistance and may even worsen the situation. C and E are aggressive and confrontational tactics that could damage the acquiring corporation's reputation and make the target company more resistant to the takeover bid.

A Corporation May Overcome the Resistance of a Takeover Target