Question

Tactics that firms use to avoid hostile takeovers include all of the following except

Group of answer choices

Getting a white knight to purchase stock in the firm

poison pills

Raising antitrust issues

Selling additional stock

None of the above

Answer 1

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The answer is none of the above

(Poison pill is similar to selling additional stock whereby the targeted company dilutes its shares in a way that the hostile bidder cannot obtain a controlling share without incurring massive expenses. Meanwhile a white knight defense ensures that a friendlier firm conducts the takeover and prevents the hostile takeover. Raising antitrust issues can also prove effective in ensuring that the stakeholders do not favour a decision that allows a hostile takeover.)