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A 'white knight' takeover defence involves:
AAdopting a poison pill that disgorges value to existing holders
BInviting a friendlier third-party acquirer to outbid hostile bidder
CSuing the hostile bidder for damages
DBorrowing aggressively to buy back shares
Answer & Solution
Correct answer: B. Inviting a friendlier third-party acquirer to outbid hostile bidder
1. Identify what the question asks: this concept maps to whiteknight (§5.2).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (B).
_Source: ICAI BoS CA Final Paper 2, Ch 14 "Mergers Acquisitions and Corporate Restructuring"_
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