If P&G's Bid for Gillette Was Invited by Gillette's Management

question 99

Multiple Choice

If P&G's bid for Gillette was invited by Gillette's management, this would be an example of a

• A) hostile acquisition.
• B) joint venture.
• C) friendly acquisition.
• D) merger.

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Definitions:

Pac-man Defence

A strategy used by a company facing a hostile takeover attempt, where it turns around to try to acquire the company that initially targeted it.

Counter-offer

A response to an original offer, modifying its terms in hopes of reaching an agreement that's more favorable to the responder.

Shares

Financial instruments that represent ownership in a company or financial asset, often entitling the shareholder to a portion of the profits.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through ownership of a majority of voting rights.