6. Defending against mergers Firms facing hostile takeovers often take actions to forestall the acquisition. For instance, a firm could borrow on terms that required immediate repayment if the firm is acquired, or it could sell off undervalued assets to make itself a less desirable target. Such tactics are referred to as Denton Manufacturing has made a tender offer for Hynde Industries. Both companies are relatively large firms in the automobile parts industry. Which of the following likely would be the most effective defensive tactic for Hynde to take against this merger? Raising antitrust concerns to the Competition Bureau Issuing new common stock Waiting for a white knight to compete with Denton's offer company for a client that would add synergistic value to the client, finding a potential acquirer for a client, developing defensive tactics, establish a fair value, and financing operations, Paul also works with his team in conducting arbitrage operi Based on your understanding of arbitrage operations, complete the following sentence: Paul is speculating in the stocks of companies that are likely takeover targets. He is involved in Firms facing hostile takeovers often take actions to forestall the acquisition. For instance, a firm could borrow on terms that required immediate repayment if the firm is acquired, or it could sell off undervalued assets to make itself a less desirable target. Such tactics are referred to as Denton Manufacturing has made a tender offer for Hynde Ir nies are relatively large firms in the automobile parts industry. Which of the following likely would be the most effective defensive Ike against this merger? Raising antitrust concerns to the Competition Bur Issuing new common stock Waiting for a white knight to compete with Denton's offer fair value, and financing operations, Paul also works with his team in conducting arbitrage operations. Based on your understanding of arbitrage operations, complete the following sentence: Paul is speculating in the stocks of companies that are likely takeover targets. He is involved in In a merger, the acquiring firm can either pay in cash or make a stock offer. The acquirer can purchase the target firm's assets or buy shares directly from the target firm's shareholders. Consider the following statement about the impact of the takeover bid structure: The structure of the takeover bid affects the ability of the target firm's shareholders to benefit from future merger-related gains. Is this statement true or false? True False A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact of takeover bids on the target firm and the acquiring firm, review the diagram below and choose which statements are correct. Diagram: Merger Tax Effects A takeover bid can be structured in different ways, making it either a taxable or a nontaxable offer. Based on your understanding of the impact of takeover bids on the target firm and the acquiring firm, review the diagram below and choose which statements are correct. Diagram: Merger Tax Effects A Check all that apply. The acquiring firm adds acquired assets to its books at their book values. The target company shareholders will benefit from the synergistic gains created by the merger. The acquiring firm depreciates acquired assets at the old rate. Target shareholders tender their shares, receive cash, and pay personal taxes on realized capital gain