Solved

Match the Following

Question 127

Matching

Match the following:

Premises:
Poison pill
Responses:
A more acceptable acquirer than the one attempting a hostile takeover.
A legal device that makes a hostile takeover prohibitively expensive for the acquirer.
A defensive measure in which a target company buys its own shares from a potential acquirer, usually at a premium over market value
Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders

Correct Answer:

A more acceptable acquirer than the one attempting a hostile takeover.
A legal device that makes a hostile takeover prohibitively expensive for the acquirer.
A defensive measure in which a target company buys its own shares from a potential acquirer, usually at a premium over market value
Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders
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