Asked by Salli Braswell on Jun 01, 2024
Verified
_____________ is a defensive tactic in which a firm makes a tender offer for a given amount of its own stock while excluding certain shareholders.
A) A repurchase and/or standstill agreement.
B) A share rights plan.
C) An exclusionary self-tender offer.
D) A poison pill.
E) A flip-over provision.
Exclusionary Self-tender
A corporate strategy in which a company offers to purchase its own shares from shareholders, typically at a premium, as a means to reduce the number of outstanding shares and thus potentially increase the share price.
Repurchase Agreement
A financial transaction in which one party sells a security to another party with the promise to buy it back at a specified date and price.
Poison Pill
A strategy used by companies to deter hostile takeovers by making the company less attractive to the potential acquirer.
- Discern the strategies and processes enterprises use to safeguard against aggressive takeover actions.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
C
Explanation :
An exclusionary self-tender offer is a defensive strategy where a company offers to buy back its own shares from its shareholders, excluding certain shareholders, often to fend off a hostile takeover. This tactic can prevent unwanted shareholders from gaining a larger stake in the company.
Learning Objectives
- Discern the strategies and processes enterprises use to safeguard against aggressive takeover actions.