In Canada,which of the following are possible defenses that a target firm can use against an unfriendly acquiring firm? The target firm may:
A) I and III
B) II, III, and IV
C) I, II, and III
D) I, III, and IV
I.Change the company by-laws so that the successful bidder may be prevented from quickly replacing the existing board of directors.
II.Attempt to buy the shares of the pursuing firm.
III.Argue through the courts that the takeover violates the substance or procedures set out in an applicable statute.
IV.Issue additional voting shares to dilute earnings per share.

Question

Quizplus · Accepted Answer

Option I is a possible defense that a target firm can use by changing their by-laws to prevent a quick replacement of the existing board of directors. Option II is another possible defense that the target firm can employ by buying the shares of the pursuing firm. Option III is also a possible defense where the target firm can argue through the courts that the takeover violates the substance or procedures set out in an applicable statute. Option IV, however, is not a valid defense against unfriendly acquiring firms. Therefore, the correct choice of options is C) I, II, and III.

In Canada,which of the Following Are Possible Defenses That a Target