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Pac-Man takeover defence involves:
ASelling crown-jewel assets to outsiders
BCounter-bid by target attempting to acquire the hostile bidder
CIssuing convertible debt to friendly investors (within the standard regulatory framework)
DFiling for liquidation to avoid takeover
Answer & Solution
Correct answer: B. Counter-bid by target attempting to acquire the hostile bidder
1. Identify what the question asks: this concept maps to pacman (§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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