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A company is significantly under-geared relative to its peers, with excess cash on the Balance Sheet and no debt. It receives a hostile bid from

A company is significantly under-geared relative to its peers, with excess cash on the Balance Sheet and no debt. It receives a hostile bid from a competitor which it believes undervalues the company. Provide a brief description of a suitable reactive defence which may be utilized in this situation and provide reasons why it can be effective in defending a hostile takeover.

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