Final answer:
In the scenario of Kennesaw Corp. attempting to take over Marietta Corp., Marietta Corp. utilized a share rights plan as a defense. This strategy allows current shareholders to buy additional shares at a preferential price, making a hostile acquisition less attractive.
Step-by-step explanation:
During a potential merger, the tactic used by Marietta Corp. to fend off a hostile takeover attempt by Kennesaw Corp. involves giving existing shareholders the right to purchase additional shares at a discounted price, below the current market rate. This tactic is known as a share rights plan, or more commonly as a "poison pill" strategy. It is designed to make the takeover less attractive or more costly by flooding the market with new shares, thereby diluting the value of shares acquired by the attempting acquirer.
The options provided are different defense mechanisms against takeovers. A golden parachute provision refers to large benefits given to top executives if the company is taken over; Pac-man defense is where the target company attempts to turn the tables by trying to acquire the firm that initiated the takeover; and the green mail provision involves buying the predator's stake at a premium to end the hostile takeover. However, the correct answer in this case is the share rights plan, a technique used to guard against unwelcome takeover bids by giving shareholders the ability to buy more shares at a preferential price.
Considering the broader context of corporate mergers and acquisitions, antitrust laws are in place to maintain competition in the market, which often includes reviewing potential mergers for concerns regarding market power concentration. The Federal Trade Commission (FTC), for instance, approved the Kinder Morgan / El Paso Corporation merger only after ensuring the divestiture of overlapping assets to prevent undue market power concentration.