A Contract That Limits the Holdings of a Bidder to a Minority

question 187

Multiple Choice

A contract that limits the holdings of a bidder to a minority stake in the target firm is called a:

• A) Supermajority amendment.
• B) Standstill agreement.
• C) Greenmail provision.
• D) Poison pill amendment.
• E) White knight provision.

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Definitions:

Pairwise Vote

A voting system where candidates are compared and voted on in pairs, with the winner being the one who wins the most direct comparisons.

Unanimity

A condition in decision-making where all members of a group fully agree on a specific decision or outcome.

Independence of Irrelevant Alternatives

A decision-making principle asserting that the relative preference between two options should not be affected by the introduction of a third irrelevant option.

Borda Count Election

A voting method that involves ranking candidates in order of preference, with points assigned based on position in the ranking, to determine the winner.