Company A launches a hostile tender offer for Company B. In response, Company B's board makes a counter-tender offer to acquire Company A's shares. This defensive strategy is known as:

Why C — Pac-Man defense

The Pac-Man defense is an aggressive counter-strategy where the target company turns the tables by making a tender offer to acquire the hostile bidder. Named after the classic arcade game, this defense aims to force the aggressor to focus on defending itself rather than completing its acquisition. The Pac-Man defense is rarely used in practice because it requires the target to have substantial financial resources and is extremely risky, potentially resulting in massive debt for the target.