A friendly suitor that a target firm turns to as an alternative to a hostile bidder is called a:
A)golden suitor.
B)poison put.
C)white knight.
D)shark repellent.
E)crown jewel.

Question

Quizplus · Accepted Answer

A friendly suitor that a target firm turns to as an alternative to a hostile bidder is called a white knight. Option A is incorrect as there is no concept of a golden suitor. Option B is incorrect as poison put is a type of defense mechanism used by the target firm to make its stock less attractive to the acquirer. Option D is incorrect as shark repellent is also a type of defense mechanism. Option E is incorrect as crown jewel refers to the most valuable and strategic asset of a firm that it may sell to raise cash.

A Friendly Suitor That a Target Firm Turns to as an Alternative