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The repurchase at a premium of the target firm's shares that were acquired by the aggressor firm in a hostile takeover in exchange for an agreement that the aggressor will no longer target the company for takeover is called:

a. a standstill agreement.
b. a poison pill.
c. greenmail.
d. crossing the palm with silver.

User Anup Shah
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5 votes

Answer:

c. greenmail.

Step-by-step explanation:

A greenmail is the repurchase at a premium of the target firm's shares that were acquired by the aggressor firm in a hostile takeover in exchange for an agreement that the aggressor will no longer target the company for takeover.

A greenmail is a form of post offer take over defense. A post offer take over defense is put in place when a hostile takeover attempt has already occurred.

A poison pill is a pre take over defense. A poison pill is when a shareholder buys a certain percentage of shares that exceeds ownership level set by the company, other shareholders are allowed to buy shares at a discount.

I hope my answer helps you

User Neethi Ratawa
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