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sir how does share buyback reduce the possibility of a takeover?
I mean after buy-back the no.of shares reduce in circulation won’t it get easier for an acquiring co to acquire shares of the target?
i am not able to name a strategy that helps in keeping predators at bay, in which the target would issue rights to existing shareholders to increase the no.of shares in issue, and make it harder to consolidate his stake in the target.
sir pls help me name that strategy and also help me understand this doubt in context of the strategy mentioned.
A share buyback means fewer shares in issue held by fewer shareholders, and the MV we share will be higher.
Rights issues on their own will not make any direct difference because the same number of shareholders just end up each owning more shares. However the fact that they have paid into the company to acquire the rights will mean that the company is worth more.
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