Series 79 practice questionmediumAnti-Takeover Defenses
A company facing a hostile takeover launches a strategy where it announces a bid to acquire the acquirer. What is this defense mechanism called?
- AWhite squire defense
- BCrown jewel defense
- CPac-Man defense✓ Correct answer
- DGreenmail defense
Explanation
Why C — Pac-Man defense
The Pac-Man defense involves the target company making a counteroffer to buy the would-be acquirer, thereby attempting to reverse the takeover. This is distinct from greenmail or the white squire strategies, which have different mechanics.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related M&A, Tender Offers & Restructuring questions
- Which of the following best describes a fairness opinion provided by a financial advisor in an M&A transaction?
- A public company enters into a merger agreement containing a no-shop clause but also includes a provision allowing the…
- In a management buyout (MBO) of a public company, which board structure is commonly established to evaluate the…
- A bidder commences a partial tender offer for 51% of a target company's outstanding shares. More than 51% of the shares…
- A sponsor is evaluating an LBO of a target with $200 million EBITDA and 4x net debt/EBITDA. Senior lenders offer debt…
- The 'best-price' rule in the context of tender offers requires that:
- A merger agreement provides the buyer the right to match any superior proposal received by the target before accepting…
- The 'all-holders' rule under SEC tender offer regulations requires that: