If a firm wants to take over another firm but feels the attempt to do so will be viewed as unfriendly it could decide to take a _____ approach to the acquisition.
A) crown jewel
B) shark repellent
C) bear hug
D) countertender offer
E) lockup

Question

Quizplus · Accepted Answer

A "bear hug" approach to acquisition involves making a friendly offer that is attractive enough to convince the target company's management to agree to the acquisition without going through a hostile takeover attempt. This approach is less aggressive and more amicable than a "crown jewel" or "shark repellent" approach, which involves actively dismantling the target company's assets or implementing anti-takeover measures, respectively. A "countertender offer" and "lockup" are also strategies that a target company might use to defend against a hostile takeover attempt, rather than tactics the acquiring company would use themselves.

If a Firm Wants to Take Over Another Firm but Feels