In a celebrated takeover case, an investor with significant wealth made a public offer to purchase the stock of one of the major automakers (Tesla and Twitter) for $44 per share when that same stock was trading at only $39 per share. Consider each of the following questions in turn:

a. If the market believes the acquisition will occur, what do you think the share price will be shortly after the announcement? Why? If you were a shareholder, would you sell your stock for $44 if you could? Why or why not? b. If the market believes the acquisition will not be completed, what do you think the share price will be shortly after the announcement? Why? c. In this case, the acquisition attempt was effectively stopped, partially because of a poison pill defense in place to protect existing stockholders. The share price after the acquisition failed settled at around $37 per share. Did the defensive tactic protect shareholders in this case?