$4.$ 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$.$

Josh works for an investment bank in the corporate finance division. Along with the typical functions in his job role$$such as finding a potential target company for a client which would add synergistic value to the client, finding a potential acquirer for a client, developing defensive tactics, establishing a fair value and financing operations$$Josh also works with his team in conducting arbitrage operations.

Based on your understanding of arbitrage operations complete the following sentence:

Transactions in which the arbitrageurs speculate in the stocks of companies that are likely takeover targets is called $.$

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