Test Bank For Mergers Acquisitions and Corporate Restructurings 6th Edition by Patrick A. Gaughan

Test Bank For Mergers Acquisitions and Corporate Restructurings 6th Edition by Patrick A. Gaughan

Questions: Chapter 5 – Antitakeover Measures

1. Which of the following are usually considered active antitakeover measures?
   1. Greenmail
   2. Poison pills
   3. Corporate charter amendments
   4. All of the above

1. Which of the following are usually considered preventative antitakeover measures?
   1. Greenmail
   2. Poison pills
   3. Tender offers
   4. All of the above

1. Goldsmith was able to circumvent this particular Crown-Zellerbach defense by:
   1. Poison pill
   2. Greenmail
   3. Corporate charter amendment
   4. None of the above

1. Morck, Shleifer, and Vishny found that with higher share ownership by management there tends to be:

a. More antitakeover defense

b. Higher Tobin q’s

c. Lower shareholder values

d. None of the above

1. This person invented the poison pill:
   1. Sir James Goldsmith
   2. Joe Flom
   3. Martin Lipton
   4. Carl Icahn

1. The case involving this company established the legality of poison pills in the United States:
   1. Crown-Zellerbach
   2. Kraft Foods
   3. Universal Foods
   4. Household International

1. Poison pill adoptions have:
   1. Increased in recent years
   2. Deceased in recent years
   3. Been stable
   4. Have slowly and steadily increased

1. Research shows that changing the state of incorporation:
   1. Had no significant shareholder wealth effects
   2. Resulted in increased shareholder wealth effects
   3. Resulted in decreased shareholder wealth effects
   4. None of the above

1. The use of greenmail has:
   1. Gone up in the 2000s
   2. Has steadily declined and is not common today
   3. Is used mainly when the raider is a hedge fund
   4. Is used mainly when the raider is a private equity fund

1. The Pac-Man defense:
   1. Has found a new resurgence
   2. Was done in the Bendix-Martin Marietta battle
   3. Is not common today
   4. Both a and b
   5. Both b and c