Pac-Man defense

Pac-Man defense

The Pac-Man defense is a defensive option to stave off a hostile takeover in which a company that is threatened with 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 knight," and the company was sold to Allied the same year. The incident was labeled a "Pac-Man defense" in retrospect.

The name refers to the star of a video game in which the hero (Pac-Man) is at first chased around by certain enemies of which he has no power over. However, after eating an "Energizer" (also known as a "Power Pill"), he is able to chase and devour these enemies which were previously pursuing him. The term (though not the technique) was coined by buyout guru Bruce Wasserstein.

Bibliography

* "Big Deal: The Battle for the Control of America's Leading Corporations", Bruce Wasserstein, (1988, ISBN 0-446-67521-0)
* "Pac-Man Defense" http://www.investopedia.com/terms/p/pac-man-defense.asp

External links

*" [http://www.efmaefm.org/efma2006/papers/881619_full.pdf Preventive anti-takeover defenses: evidence from the French market for corporate control] "


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Pac-Man defense — /pak man / a defensive tactic against a hostile takeover in which the targeted company makes its own bid to take over the hostile firm. [1980 85; after Pac Man, a character in a video game that devours its attackers] * * * Pac Man defense «PAK… …   Useful english dictionary

  • Pac-Man Defense — A defensive tactic used by a targeted firm in a hostile takeover situation. In a Pac Man defense, the target firm turns around and tries to acquire the other company that has made the hostile takeover attempt. This term has been accredited to… …   Investment dictionary

  • Pac-Man defense — /pak man / a defensive tactic against a hostile takeover in which the targeted company makes its own bid to take over the hostile firm. [1980 85; after Pac Man, a character in a video game that devours its attackers] * * * …   Universalium

  • Pac-Man (disambiguation) — Pac Man is a popular 1980 arcade game by Namco.Pac Man may also refer to several things: * Pac Man (Atari 2600), a port of the arcade title * Pac Man (Character) ** Any object or picture resembling the main character in the Pac Man game , that is …   Wikipedia

  • Pac-Man — This article is about the original Pac Man arcade game from 1980. For other uses, see Pac Man (disambiguation). Pac Man No …   Wikipedia

  • Pac-Man Arrangement — Not to be confused with a similarly titled but wholly different game that appeared in Namco Museum Battle Collection . Pac Man Arrangement is a remake of the game Pac Man . It was released in 1996 by Namco as part of Namco Classics Collection… …   Wikipedia

  • Pac-Man strategy — Takeover defense strategy in which the prospective acquiree retaliates against the acquirer s tender offer by launching its own tender offer for the other firm. The New York Times Financial Glossary takeover defense strategy in which the… …   Financial and business terms

  • Pac Man — A form of defense used in a hostile takeover situation. The target firm turns around and tries to take over the company that has made the hostile bid. Just think all those years of playing Atari games could save a company someday …   Investment dictionary

  • Pac-Mandefense — Pac Man defense (păkʹmăn ) n. A stratagem used to prevent a hostile takeover, by which the target company tries to acquire the bidder.   [After Pac Man, trademark for a video game in which a character gobbles up its opponents.] * * * …   Universalium

  • Défense interarmées (revue) — Défense Interarmées ... Pays  France Langue Français Périodicité Mensuel Genre …   Wikipédia en Français

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”