Series 79 practice questionmediumAnti-Takeover Defenses
Which of the following is an example of a white knight defense?
- AThe target increases dividends to deter a bidder
- BThe target initiates a share buyback
- CThe target seeks a friendly acquirer to outbid a hostile suitor✓ Correct answer
- DThe target adopts a poison pill
Explanation
Why C — The target seeks a friendly acquirer to outbid a hostile suitor
A white knight defense involves finding a more acceptable acquirer to thwart a hostile takeover. The trap is mistaking other defensive actions for the white knight strategy.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related M&A, Tender Offers & Restructuring questions
- Under Rule 14e-1(c) of the Williams Act, how soon after expiration of a successful tender offer must the bidder pay for…
- A target company amends its shareholder rights plan to lower the triggering threshold from 20% to 10% during a hostile…
- A private equity firm is evaluating an LBO where the target company has $50 million EBITDA, $400 million debt capacity…
- Under the Williams Act, which document must disclose whether the target board recommends acceptance or rejection of a…
- Which disclosure is required in a fairness opinion delivered to a target board in a merger?
- In the context of HSR review, what is a 'second request'?
- In a merger, which mechanism is commonly used to resolve disputes over earnout achievement post-closing?
- Which party is required to make a prompt disclosure if it amends or withdraws its recommendation to shareholders during…