Hostile Takeover Defenses - White Knight or Pac Man

The video discusses two strategies to counter hostile takeovers: the white knight defense and the Pac-Man defense. The white knight defense involves the target company being acquired by a more favorable corporation instead of the hostile acquirer. The Pac-Man defense involves the target company attempting to acquire the hostile acquirer. Both strategies aim to protect the current board of directors, though they may not always align with shareholder interests.

What is the purpose of a white knight defense in a hostile takeover?

How might a corporation maintain its autonomy during an acquisition by a friendly corporation?

Describe the Pac-Man defense and how it operates in a hostile takeover scenario.

In what ways can shareholder interests be affected during a hostile takeover?

What are the potential consequences of a hostile takeover for the current board of directors?