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viernes, 26 de diciembre de 2014

The Pacman strategy

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The Pac Man strategy  is a defense used by a company that may be acquired in a hostile takeover. The company about to be acquired seeks to prevent absorption purchasing the shares of the company that wants to make the hostile takeover and make a bid for the company.

Suppose that XYZ company seeks a hostile absorption of ABC Corp. and has published a tender. ABC does not want to be acquired, so the board decides to acquire XYZ instead, and starts buying shares of XYZ. and publish their own bid to acquire it.

Pac Man strategy is named after the popular video game, where the object of the game is eat or be eaten. Pac Man is forced to consume their opponents to prevent being consumed.

The strategy Pac Man is one of many different strategies that a company can use to prevent hostile takeover.



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