SouthWest Holiday is considering making an offer to acquire NorthEast Holiday Company. The CFO of SouthWest has collected the following information:

	SouthWest	NorthEast
P/E ratio	16.40	12.70
Earnings	4,698,200	1,193,800
Dividends	1,069,000	689,000
No of shares outstanding	2,690,000	1,040,000

The securities analysts expect the earnings and dividends of NorthEast to grow at a constant rate of 5% each year. The managers of SouthWest believe that the acquisition of NorthEast will achieve some economies of scale that will increase the growth rate 8% per year.

Required:

a) Advise NorthEast FIVE possible takeover defence strategies. You should rank them in the order of your recommendation (e.g. 1 most recommended; 5 least recommended), clearly explain how each strategy works and its effectiveness.