Definition of Pac Man Defense

Financial Terms Beginning with P

What is a Pac Man Defense

A pac man defense is more of a counterattack in a hostile takeover where the target company becomes the aggressor by seeking to acquire the acquirer. If the initial acquirer is a public company, the target company will attempt to buy enough of their stock to either drive them away from the hostile takeover or to outright acquire them.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Black Knight

Hostile Takeover

White Knight

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