A company is significantly under-geared relative to its peers, with excess cash on the Balance Sheet and no debt. It receives a hostile bid from a competitor which it believes undervalues the company. Provide a brief description of a suitable reactive defence which may be utilized in this situation and provide reasons why it can be effective in defending a hostile takeover.

Answer rating: 100% (QA)

In a situation where a company is significantly undergeared has excess cash on its balance sheet and is facing a hostile takeover bid that it believes ... View the full answer