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1. white knights, white squires 3. risk arbitrage, pure arbitrage

Aa Aa 10. Defending against mergers Firms facing hostile takeovers often take actions to forestall the acquisition For instance, a firm could offer special voting rights to a particular shareholder who agrees to buy enough of the target company's shares to block it from a hostile takeover. Such tactics are referred to as Denton Manufacturing has made a tender offer for Hynde Industries. Both companies are relatively large firms in the automobile parts industry. Which of the following likely would be the most effective defense tactic for Hynde to take against this merger? O Raising antitrust concerns to the Justice Department O Soliciting a white knight to compete with Denton's offer O Issuing new common stock Heather works for an investment bank in the corporate finance division. Along with the typical functions in her job role, such as finding a potential target company for a client which would add synergistic value to the client, finding a potential acquirer for a client, developing defensive tactics, establishing a fair value and financing operations, Heather also works with her team in conducting arbitrage operations Based on your understanding of arbitrage operations complete the following sentence: In a recent trade, Heather was assigned to buy 10% of a client's shares from the open market at $45.50 per share and sell the shares at a price of $46.20 to a private investor, pocketing a return for her firm. Heather was involved in

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