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Unformatted text preview: – Capital Expenditures? – Insider Ownership – Amount of takeover defenses? How do firms respond? • When hostile takeover attempt of rival is made, firms are more apt to: – Reduce investment – Increase leverage – Both cash on hand and free cash flow decline – Firms are also more likely to adopt takeover defenses (e.g., supermajority, poison pill, etc.)...
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- Fall '11