In August 1998, AMP launched a hostile $3.3 Billion takeover bid for the GIO Insurance Group. The takeover took 17 months, and was finally concluded in December 1999 when AMP acquired a 100% controlling interest in GIO. Shareholders in GIO were initially offered $5.35 per share, or one AMP share for every four GIO shares. The cash offer represented (approximately) a 30% premium on the market value of GIO shares. The share exchange, based on AMP's share price at the time (around $20) was valued at just over $5.05. Mid December 1998, an independent report by Grant Samuel and Associates commissioned by GIO, valued GIO shares at between $5.66 and $6.71. On 20 December 1998, stock brokers Ord Minnett advised GIO shareholders to accept the $5.35 offer. KPMG also stated the offer was generous (as GIO's shares were only valued between $4.28- $4.49 without the takeover offer). White knight Required: (i) List three factors that can motivate hostile takeover activity in practice. (ii) Identify the key risks associated with hostile takeover bids for the acquirer in practice. (iii)What actions can a target firm take to defend itself against potential hostile takeover activity? (iv)What is the purpose of independent valuation reports in takeover activity? What are the limitations (if any) of these reports?