Which defense tactic, against hostile takeovers, is described below? In College, a couple of biochemists discover a promising new cure for brain cancer. They take this cure and start to develop it. In the process, they do a IPO to raise money. They raise $5M to continue their work. At this point, Mark, one of the founders, sends a memo to Lauren stating that they should work to be purchased by a large biotech firm like Pfizer, Roche, or Abbvie, as that would serve their corporate interests best. Soon thereafter, a Sr. Scientist they hired discovers that the chemical solution can also be used a dog hair dye. Proctor and Gamble hears of this opportunity, and immediately begins a tender offer at $25 per share. The board begins buying up shares at market price to fend off the take-over. They justify it by suggesting that Proctor and Gamble does not share the same corporate values.
Which defense tactic, against hostile takeovers, is described below?
In College, a couple of biochemists discover a promising new cure for brain cancer. They take this cure and start to develop it. In the process, they do a IPO to raise money. They raise $5M to continue their work. At this point, Mark, one of the founders, sends a memo to Lauren stating that they should work to be purchased by a large biotech firm like Pfizer, Roche, or Abbvie, as that would serve their corporate interests best. Soon thereafter, a Sr. Scientist they hired discovers that the chemical solution can also be used a dog hair dye. Proctor and Gamble hears of this opportunity, and immediately begins a tender offer at $25 per share. The board begins buying up shares at market price to fend off the take-over. They justify it by suggesting that Proctor and Gamble does not share the same corporate values.
A. Long-range acquisition strategy
B. White Knight Tactic
C. Golden Parachutes
D. Scorched Earth Tactics
If a company or individual acquires 51% or more shares of a company, he would have the acquisition of the company.
Step by step
Solved in 2 steps
