Question 12.RQ.4: Identify four tactics the directors of a target business mig...
Identify four tactics the directors of a target business might employ to resist an unwelcome bid after the bid has been received.
Four methods of resisting a takeover bid, once a bid has been received, are:
- find a white knight to take over the business instead
- put a case to shareholders arguing that it is not in their long-term interests to support the takeover
- increase dividend payouts
- find a white squire to purchase a significant block of shares in the business.
Other reasons could have been cited.
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