Company a Has Made an Offer to Purchase All of the Outstanding

question 41

Multiple Choice

Company A has made an offer to purchase all of the outstanding shares of Company B for $10 per share (the current market value of the shares) . In response to Company A's offer, the shareholders of Company B were given rights to purchase additional shares at $8 per share. Which of the following tactics were employed by Company B to prevent Company A from acquiring control of Company B?

• A) Pac-man defence.
• B) Selling the crown jewels.
• C) Poison Pill.
• D) Reverse-takeover.

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Definitions:

Plan

refers to a detailed proposal for doing or achieving something, outlining steps, resources needed, and timelines.

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration by others.

Summary

A brief statement or account covering the main points or highlights of a subject.

Management

The process of dealing with or controlling things or people, often within a business organization, through the application of available resources, strategy, and leadership.