Purchasing the target firms stock in the open market

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15.Purchasing the target firm’s stock in the open market is a commonly used tactic to achieve all of the following except for a.Acquiring a controlling interest in the target firm without making such actions public knowledge.b.Lowering the average cost of acquiring the target firm’s sharesc.Recovering the cost of an unsuccessful takeover attemptd.Obtaining additional voting rights in the target firme.Strengthening the effectiveness of proxy contests
MGT 4066Assignment 1
5Mylan Thwarted in Hostile Takeover of PerrigoAnswer briefly the following questions (Total 30 points, each question 3 points)1. What was Perrigo’s main line of defence against Mylan? Why was so much reliance given to this tactic? Speculate as to why shareholders accepted Perrigo’s board and management’s arguments.
2. How did corporate inversions undertaken by each firm impact the outcome of the hostile takeoverattempt?
3. Identify the takeover tactics and defences employed by Mylan and Perrigo, respectively. Explain why each may have been used.
4. What does the reaction of investors to the breakup of the deal tell you about what they were thinking?

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