Match the Following

Question 103

Matching

Match the following:

Premises:

Responses:

Spinoff

Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders

A more acceptable acquirer than the one attempting a hostile takeover.

A defensive measure in which a target company buys its own shares from a potential acquirer, usually at a premium over market value

A legal device that makes a hostile takeover prohibitively expensive for the acquirer.

Premises:

Spinoff

Responses:

Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders

A more acceptable acquirer than the one attempting a hostile takeover.

A defensive measure in which a target company buys its own shares from a potential acquirer, usually at a premium over market value

A legal device that makes a hostile takeover prohibitively expensive for the acquirer.

Correct Answer:

Premises:

Responses:

Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders

A more acceptable acquirer than the one attempting a hostile takeover.

A defensive measure in which a target company buys its own shares from a potential acquirer, usually at a premium over market value

A legal device that makes a hostile takeover prohibitively expensive for the acquirer.