In defending against a hostile takeover, the strategy that involves the firm repurchasing through negotiation a large block of stock at a premium from one or more shareholders in order to end those shareholders’ hostile takeover attempt is known as the _________ strategy.
A. poison pill
B. greenmail
C. golden parachute
D. shark repellent
Answer:B
In defending against a hostile takeover, the strategy that involves the firm repurchasing through negotiation a large block of stock at a premium from one or more shareholders in order to end those shareholders’ hostile takeover attempt is known as the _________ strategy.
A. poison pill B. greenmail C. golden parachute D. shark repellent