Fact Pattern 41-2B
Mega Corporation wants to gain control of MiniCo,Inc.The companies negoti?ate for several months,without coming to terms.Mega decides to pursue a takeover at?tempt.MiniCo decides to resist.
-Refer to Fact Pattern 41-2B.MiniCo solicits a merger with NuNation Corporation,a third party,which makes a better offer to MiniCo's share?holders.NuNation is a
A)crown jewel.
B)Pac-Man.
C)poison pill.
D)white knight.

Question

Fact Pattern 41-2B 
Mega Corporation wants to gain control of MiniCo,Inc.The companies negoti?ate for several months,without coming to terms.Mega decides to pursue a takeover at?tempt.MiniCo decides to resist.
-Refer to Fact Pattern 41-2B.MiniCo solicits a merger with NuNation Corporation,a third party,which makes a better offer to MiniCo's share?holders.NuNation is a
A)crown jewel.
B)Pac-Man.
C)poison pill.
D)white knight.

Quizplus · Accepted Answer

NuNation Corporation is a white knight because it is a third party that is being sought out by MiniCo to help defend against Mega Corporation's takeover attempt and has made a better offer to MiniCo's shareholders. A crown jewel is a valuable asset that a company may sell in order to fend off a takeover attempt. Pac-Man and poison pill are defensive tactics used by the target company, but they do not apply in this scenario.