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Match the Following

Question 111

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Match the following:

Premises:
White knight
Responses:
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
A more acceptable acquirer than the one attempting a hostile takeover.
Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders

Correct Answer:

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
A more acceptable acquirer than the one attempting a hostile takeover.
Divestiture through the creation of a new corporation whose shares are distributed pro rata to the original firm's stockholders
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