- 6 Marks
FM – March 2023 – L2 – Q2b – Mergers and acquisitions
Explain three defensive strategies that a target company can adopt to ward off a hostile takeover.
Question
In a hostile takeover, management and staff of target companies go through a lot of psychological and mental trauma causing management of target companies to resist the takeover. There are certain defensive strategies that are usually used by management of the target company to ward off the predator.
Required:
Explain THREE (3) defensive strategies that can be adapted by the target company to ward off predators. (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Corporate Governance, Defensive strategies, Hostile takeover
- Level: Level 2
- Topic: Mergers and acquisitions
- Series: MAR 2023
