Why might the management of a target firm resist a takeover attempt, even if it seems to benefit shareholders? Are these actions ethical?
Added by Joshua D.
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They may feel a strong personal attachment to the company and its mission, which can lead to a reluctance to hand over control to another entity. Show more…
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Suppose you own stock in a company. The current price per share is $\$ 25 .$ Another company has just announced that it wants to buy your company and will pay $\$ 35$ per share to acquire all the outstanding stock. Your company's management immediately begins fighting off this hostile bid. Is management acting in the shareholders' best interests? Why or why not?
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