What is a Pac-Man Defense?
How Does a Pac-Man Defense Work?
Let's assume Company ABC wants to purchase Company XYZ. Company XYZ's board does not want to sell, but Company ABC threatens a hostile takeover. To ward off the takeover attempt, Company XYZ makes an to buy Company ABC.
In the popular 1980s video game, 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.