Series 79 practice questioneasyAnti-Takeover Defenses
Which anti-takeover defense involves the target company selling valuable assets to make itself less attractive to an acquirer?
- AStaggered board
- BPoison pill
- CWhite knight
- DCrown jewel defense✓ Correct answer
Explanation
Why D — Crown jewel defense
A crown jewel defense involves selling key assets to reduce the target’s attractiveness. Unlike a staggered board or a white knight, it directly diminishes the value for the hostile bidder.
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