BUS 225 DAYONE LL
17th Edition
ISBN: 9781264116430
Author: BLOCK
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 20, Problem 9DQ
Summary Introduction
To explain: The way in which firms try to avoid being a part of a targeted takeover.
Introduction:
Targeted takeover:Â
A targeted takeover is a mechanism through which potential companies takes over non-performing entities with high cash balances and large number of outstanding shares.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What are some defensive tactics that firms can use to resist hostile takeovers?
While acquisitions are often friendly, there are numerous occasions when a party does not want to be acquired. Discuss the possible 5 defensive strategies that firms can implement to fend off a hostile takeover attempt
Why does IPO underpricing exist?
Knowledge Booster
Similar questions
- What the benefits of the DuPont analysis to deconstruct a firms ROE?arrow_forwardHow does a hostile takeover affect the company’s stakeholder (shareholders, executives, employees, and society in general)? Is it usually beneficial or detrimental to these stakeholders? Why?arrow_forward“Merger may be profitable but are they good for the economy?” Explain your answer towards this statement.arrow_forward
- [S1] A proxy fight involves having shareholders looking for board members that will allow an acquisition. [S2] A tender offer can be made with or without plans for an acquisitiona. Only S2 is true.b. Both are true.c. Only S1 is true.d. Neither is true.arrow_forwardwhat if your company is being targeted by a SPAC would that be a good thing or a bad thing? What factors would you look at to make that determination? what are the pitfalls in selling a company?arrow_forwardQ5. Which of the following factors often affects hostile takeover bids? The takeover premium The composition of the board of the target firm The composition of the ownership of the target’s stock The target’s bylaws All of the abovearrow_forward
- What are some actions that companies can take tominimize or reduce risk exposures?arrow_forwardWhat are some alternative ways of structuring takeover bids?arrow_forwardDiscuss the validity of risk diversification as a motivation for companies engaging in merger and acquisition activity?arrow_forward
- It is quite often we observe some firms takeover target firms from a different industry. If diversifying harms firm value and it is more efficient to make diversification at the investor (shareholder) level than at the firm level, why do you think the managements still choose to make diversified acquisitions?arrow_forwardA6) Finance What are different Anti Merger strategies available to management of firm?arrow_forwardFor a given firm, why does WACC change over time?Can the firm control the factors that lead to changesin the WACC and thus determine its WACC?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:CengageAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning