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Golden parachutes is a defensive manoeuvre by the board of directors and senior management to thwart a takeover. An example is when: the target company's

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Golden parachutes is a defensive manoeuvre by the board of directors and senior management to thwart a takeover. An example is when: the target company's board quits in protest and files a costly law suit against the acquirer. stock options are issued to existing shareholders of the target company. the target company divests of its crown assets making it less valuable. executives and directors of the target company may receive large departing payments

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