When Reese Group of Hotels (RGH)was on the verge of facing a hostile takeover bid by rivals Blossoms Group (which held a 14.12 percent stake in RGH),Rely's came forward and bought a 14.98 percent stake in RGH,thereby relieving RGH from the hostile takeover risk.This kind of tender offer defense is called:

Question

Quizplus · Accepted Answer

A white knight rescues the corporation from the black knight by offering more money for the corporation's shares.In this case,RGH saved itself from a hostile takeover bid by Blossoms when Rely's (the white knight)purchased a large stake in RGH.

When Reese Group of Hotels (RGH)was on the Verge of Facing