Pac-Man defense: Difference between revisions
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A Pac-Man defense is when a company that is under a hostile takeover acquires its would-be buyer. |
A Pac-Man defense is when a company that is under a hostile takeover acquires its would-be buyer. |
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The most quoted example in U.S. corporate history is the attempted hostile takeover of [[Martin Marietta]] by [[Bendix Corporation]] in [[1982]]. In response Martin Marietta started buying Bendix stock with the aim of assuming control over the company. Bendix persuaded [[Allied Corporation |
The most quoted example in U.S. corporate history is the attempted hostile takeover of [[Martin Marietta]] by [[Bendix Corporation]] in [[1982]]. In response, Martin Marietta started buying Bendix stock with the aim of assuming control over the company. Bendix persuaded [[Allied Corporation]] to act as a "[[White knight (business)|white lnight]]," and the company was sold to Allied the same year. The incident was labeled a "Pac-Man defense" in retrospect. |
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The name refers to when [[Pac-Man]], the star of the [[videogame]] of the same name, turns around and devours the ghost that was previously pursuing him (after eating a Power Pill that allows him to do so). |
The name refers to when [[Pac-Man]], the star of the [[videogame]] of the same name, turns around and devours the ghost that was previously pursuing him (after eating a Power Pill that allows him to do so). |
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Revision as of 21:37, 20 October 2005
The Pac-Man defense is a defensive option to stave off a hostile takeover.
A Pac-Man defense is when a company that is under a hostile takeover acquires its would-be buyer.
The most quoted example in U.S. corporate history is the attempted hostile takeover of Martin Marietta by Bendix Corporation in 1982. In response, Martin Marietta started buying Bendix stock with the aim of assuming control over the company. Bendix persuaded Allied Corporation to act as a "white lnight," and the company was sold to Allied the same year. The incident was labeled a "Pac-Man defense" in retrospect.
The name refers to when Pac-Man, the star of the videogame of the same name, turns around and devours the ghost that was previously pursuing him (after eating a Power Pill that allows him to do so).
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