- CFA Exams
- CFA Level I Exam
- Study Session 8. Corporate Finance (2)
- Reading 23. Mergers and Acquisitions
- Subject 4. Transaction characteristics
CFA Practice Question
Which of the following is not a method of an acquirer's to gain control of its target company?
A. Bear hug.
B. Proxy fight.
C. Poison pill.
Explanation: Poison pill is one of the takeover defense mechanisms.
User Contributed Comments 4
| User | Comment |
|---|---|
| ramdabom | What is a bear hug? |
| humble | A bear hug is when the target's CEO objects to a merger offer and the acquirer's mgmt decides to take the offer directly to the Board. |
| StJohnDale | What is a proxy fight? |
| akirchner1 | Proxy fight: the acquirer takes control of a company through shareholder vote. |