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1. Defensive Restructuring – One, is the scorched earth policy by incurring a large debt and selling off attractive segments of the company and using the newly acquired funds to declare a large dividend to existing shareholders.
Two, selling off the crown jewels whereby it entails disposing of those business segments which the bidder is most interested.
2. Poison Pills – They are warrants issued to existing shareholders that give them the right to purchase the surviving firm securities at very low prices in the event of a merger.
3. Poison Puts – Where it permits the bond or debt holders to put (sell) the debt securities to the issuer company or its successor at par or at par plus some premium.
4. Anti-takeover Amendments – Such as fair price provisions, which provide that all shareholders must receive a uniform fair price.
5. Golden Parachutes – They are separation provisions of an employment contract that provide for payments to managers under a change of control clause.
francis1897 answered the question on February 27, 2023 at 06:22