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A toy manufacturer, Tots, Inc., faced bankruptcy but did not want to be acquired by its main competitor, We Are Toys. The management of Tots,

A toy manufacturer, Tots, Inc., faced bankruptcy but did not want to be acquired by its main competitor, We Are Toys. The management of Tots, Inc. approached a more acceptable firm, Toys N Things, which was willing to complete to acquisition instead. In this scenario, Toys N Things is referred to as a

white knight.

preemptive investor.

shark repellent.

proxy investor.

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