Defending against mergers

Firms facing hostile takeovers often take actions to forestall the acquisition.

For instance, a firm could seek help from another company to become a friendly acquirer of a target firm and protect itself from a hostile takeover

Such tactics are referred to as

Heather works for an investment bank in the corporate finance division. Along with the typical functions in her job role$-$such as finding a potentia

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$-$Heather also works with her 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