A strategy that is not used by target firms to fend off a takeover is
A) greenmail.
B) LBO.
C) Pac-Man.
D) poison pill.

Question

Quizplus · Accepted Answer

Leveraged buyout (LBO) is a strategy used by the acquiring firm to finance the purchase of the target firm using a significant amount of debt. Target firms do not use this strategy to fend off a takeover. The other options, greenmail, Pac-Man, and poison pill, are all anti-takeover strategies used by target firms.

A Strategy That Is Not Used by Target Firms to Fend