Question

Daynon Inc. buys Leeston Corp., a firm that makes shipbuilding components, despite the opposition from Leeston's board of directors and its top management. This acquisition exemplifies a _____.

a. compulsive blend
b. bootstrap fusion
c. hostile takeover
d. lobster trap

Answer 1

Daynon Inc.'s acquisition of Leeston Corp., despite opposition, exemplifies a c) ahostile takeover.

Step-by-step explanation:

Daynon Inc.'s acquisition of Leeston Corp., despite the opposition from Leeston's board of directors and top management, exemplifies a hostile takeover. In a hostile takeover, the acquiring company takes over the target company against the wishes of its management. This often involves bypassing negotiations and directly approaching the shareholders of the target company to gain control. The acquiring company may do this by purchasing a majority of shares on the open market or through a tender offer.