Series 79 practice questioneasyAnti-Takeover Defenses
A company that invites a friendly third party to acquire it in response to a hostile bid is using which anti-takeover defense?
- AWhite knight✓ Correct answer
- BStaggered board
- CDual-class share structure
- DProxy fight
Explanation
Why A — White knight
A white knight defense involves seeking a more favorable acquirer to outbid a hostile suitor. The trap is confusing this with board structure or voting mechanisms.
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