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Series 79: M&A, Tender Offers & Restructuring
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?

  1. AStaggered board
  2. BPoison pill
  3. CWhite knight
  4. DCrown jewel defense✓ Correct answer
Explanation

Why DCrown 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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