Which of the following techniques does a firm use to fend off a hostile takeover attempt if the firm’s management requires a large majority of stockholders to approve the takeover?Multiple Choicea poison pilla shark repellenta white knighta class action
Question
Which of the following techniques does a firm use to fend off a hostile takeover attempt if the firm’s management requires a large majority of stockholders to approve the takeover?Multiple Choicea poison pilla shark repellenta white knighta class action
Solution
The technique that a firm uses to fend off a hostile takeover attempt, where the firm’s management requires a large majority of stockholders to approve the takeover, is known as a "shark repellent". This strategy involves the adoption of measures that make the company less attractive to potential acquirers. These measures could include changes in the company's corporate laws or charter, such as requiring a large majority of stockholders to approve the takeover.
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