A financial device designed to make unfriendly takeover attempts financially unappealing,if not impossible,is called:
A) a golden parachute.
B) a standstill agreement.
C) greenmail.
D) a poison pill.
E) a white knight.

Question

Quizplus · Accepted Answer

A poison pill is a financial device designed to make unfriendly takeover attempts financially unappealing or even impossible. It often involves triggering certain actions, such as flooding the market with convertible bonds or shares, if an unwanted takeover bid is made. This makes the target company less attractive to the acquirer, thus making the takeover attempt more difficult and expensive.

A Financial Device Designed to Make Unfriendly Takeover Attempts Financially