Once an Unfriendly Takeover Attempt Has Been Initiated, the Target

question 11

Multiple Choice

Once an unfriendly takeover attempt has been initiated, the target company's management can employ various other antitakeover measures to deter a takeover, including when the takeover candidate can attempt to buy back its shares, at a premium over the shares' market price, from the company or investor who initiated the unfriendly takeover attempt. The amount of this premium is called ____.

• A) blackmail
• B) greenmail
• C) white knight
• D) poison pills

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Definitions:

Falsity

Relates to the quality or state of being false or untrue.

Conversion

Any distinct act of dominion wrongfully exerted over another’s personal property in denial of or inconsistent with his rights therein. That tort committed by a person who deals with chattels not belonging to him in a manner that is inconsistent with the ownership of the lawful owner.

Defendant

An individual, company, or institution being sued or accused in a court of law.

Property

Assets or possessions that belong to an individual or entity, encompassing both physical objects and legal rights.