Which of the Following Is Not a Correct Description of a Defensive

question 50

Multiple Choice

Which of the following is not a correct description of a defensive strategy to a tender offer?

• A) Selling a "crown jewel" refers to a sale by the target corporation of an asset that was particularly attractive to the tender offeror.
• B) A "white knight" merger refers to a merger with a different purchaser that is friendlier toward management than the company that made the tender offer.
• C) A "poison pill" is a strategy built into contracts, bylaws, etc., that can make any purchase of the corporation more expensive, such as leases that automatically expire upon the purchase and would require renegotiation, likely at a higher price.
• D) Under a "standstill agreement," shareholders holding a large number of shares of the target corporation agree that no one of them will sell to the tender offeror, even if the tender offeror raises the offer price.
• E) A "greenmail" payment is a payment, usually at greater than fair market value, made by the target corporation to the tender offeror for shares already owned by the tender offeror, in exchange for the tender offeror dropping the tender offer.

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Definitions:

Project Office

A centralized department that oversees and improves the management of projects within an organization, ensuring consistency and efficiency.

Policies And Procedures

Formalized rules and guidelines within an organization that outline operations, decision-making processes, and appropriate behavior for employees.

Start-Up Phase

The initial stage in a project or business venture where plans are made, resources are gathered, and activities begin to launch the project or business.

Project Manager

A professional responsible for planning, executing, and closing projects, overseeing the work to achieve project goals.