Hostile Takeover Defenses - Delay Tactics

The video tutorial discusses two corporate strategies used to fend off hostile takeovers: targeted stock repurchase plans, also known as greenmail, and standstill agreements. Targeted stock repurchase involves buying back shares from an acquirer at a premium to maintain control, which may not benefit shareholders. Standstill agreements involve paying the acquirer to halt their takeover attempt temporarily, allowing the corporation time to reorganize. Both methods can be advantageous to the corporation and the acquirer but often do not favor existing shareholders.

What are the potential consequences of a board's actions in response to an acquirer?

In what way can paying an acquirer to stop their purchase be beneficial?