Asked by Queen Owusu on May 23, 2024
Verified
Which of the following will NOT be regarded as being a barrier to hostile takeovers?
A) targeted share repurchases
B) shareholder rights provisions
C) restricted voting rights
D) cumulative voting
Hostile Takeovers
Hostile takeovers occur when one company tries to acquire another without the consent or cooperation of the target company's management or board.
Targeted Share Repurchases
Also known as greenmail, occurs when a company selectively buys back stock from a potential acquirer at a price that is higher than the market price. In return, the potential acquirer agrees not to attempt to take over the company.
Cumulative Voting
A voting system used in elections, where shareholders multiply the number of shares they own by the number of director positions available to get their total number of votes.
- Understand the concepts and mechanisms of corporate takeovers and their barriers.
Verified Answer
Learning Objectives
- Understand the concepts and mechanisms of corporate takeovers and their barriers.
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