A. concentrate on only maximizing revenue instead of profits 0 B. no longer be willing to enforce shareholder rights plans. O c. institute policies that make the company a less attractive takeover target. 0 D. use poison pills to artificially raise the stock price 0 E. take steps to enhance profitability to increase the cost of the takeover.

D. Use Poison Pills to artificially raise the stock price.

Why?: A hostile takeover is feared when the bidder keeps pursuing the target company and sometimes bid an offer without informing the board of directors of the target company. To avoid this from happening, or from the company being takenover, the target company tries to make its stocks and shares unfavourable for the bidder. Its a especially designed shareholders rights’ plan to fend off creepy acquirers.

It was first invented in 1982 by Takeover Lawyer Martin Lipton and first implemented in 1983. Most companies make a limited use of this strategy but it is still used to fend off hostile takeovers.

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