What it is:
How it works/Example:
Let's assume that Company ABC wants to purchase Company XYZ. Company XYZ's board does not want to sell the company to Company ABC, but Company ABC is threatening a hostile takeover. To ward off Company ABC, Company XYZ turns around and makes an to buy Company ABC.
In the 1980s Pac Man, Pac Man is able to eat a power pellet that gives him the power to eat the ghosts that are chasing him.
Martin Marietta introduced the Pac Man defense in 1982 by bidding for every company that was trying to buy it.
Why it matters:
The Pac Man defense is a drastic step because it often requires targets to borrow or dip into acquirers.to purchase potential