Series 79 practice questionmediumAnti-Takeover Defenses
Which anti-takeover defense involves a target company seeking a friendly third-party acquirer to prevent a hostile takeover?
- APac-Man defense
- BPoison pill
- CWhite knight✓ Correct answer
- DCrown jewel defense
Explanation
Why C — White knight
A 'white knight' is a friendly third party that acquires a target to thwart a hostile bid. This is distinct from a Pac-Man or poison pill, which are direct defensive tactics.
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