All of the following are true of poison pills except for
A. They are a new class of security
B. Generally prevent takeover attempts from being successful
C. Enable target shareholders to buy additional shares in the new company if an unwanted shareholder’s ownership exceeds a specific percentage of the target’s stock
Delays the completion of a takeover attempt
E. May be removed by the target’s board if an attractive bid is received from a so-called “white knight.”
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All of the following are common takeover defenses except for
A. Poison pills
B. Litigation
C. Tender offers
D. Staggered boards
E. Golden parachutes
Which of the following are common takeover tactics?
A. Bear hugs
B. Open market purchases
C. Tender offers
D. Litigation
E. All of the above
All of the following are true of tender offers except for
A. Tender offers consist only of offers of cash for target stock
B. Are generally considered an expensive takeover tactic
C. Are extended for a specific period of time
D. Are sometimes over subscribed
E. Must be filed with the SEC
Purchasing the target firm's stock in the open market is a commonly used tactic to achieve all of the following except for
Acquiring a controlling interest in the target firm without making such actions public knowledge.
B. Lowering the average cost of acquiring the target firm's shares
C. Recovering the cost of an unsuccessful takeover attempt
D. Obtaining additional voting rights in the target firm
E. Strengthening the effectiveness of proxy contests