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Sunday, May 25, 2014

Issuing stock rights to existing shareholders, enabling them to purchase additional shares at a…

Name the following takeover defense tactics:

  1. Issuing stock rights to existing shareholders, enabling them to purchase additional shares at a price below market value, but exercisable only in the event of a potential takeover. ________
  2. The purchase of a controlling interest in the target firm by its managers and third-party investors, who usually incur substantial debt in the process and sub-sequently take the firm private. ________
  3. Encouraging a third firm, more acceptable to the target company management, to acquire or merge with the target company. ________
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