Series 79 practice questionmediumAnti-Takeover Defenses
Which of the following best describes the Pac-Man defense?
- AThe target company adopts a poison pill
- BThe acquirer launches a tender offer for a third party
- CThe target company attempts to acquire the hostile acquirer✓ Correct answer
- DThe target company forms a staggered board
Explanation
Why C — The target company attempts to acquire the hostile acquirer
The Pac-Man defense is when the original target company makes a counter-offer to acquire its hostile bidder. Confusing this with poison pills or staggered boards is a common exam trap.
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