Assignment one 1. Is this a hostile takeover? Although AgroVate is a publicly traded company, it began as a family-owned business and is currently at risk of being procured by larger companies. Based on those facts, this is a hostile takeover. 2. Can the AgroVate board legally adopt defensive measures against Bijoux? The Maxxo brothers’ main concern is Pearson’s remote management style possibly intimidating AgroVate’s long-time employees into leaving AgroVate. That concern alone is not suffienceint grounds to legally adopt defensive measures against Bijoux. In order for AgroVate to legitimately adopt defensive measures there has to be evidence that Bijoux poses a risk to AgroVate’s corporate effectiveness. 3. Two types of mergers are mentioned here. Define each type. The first type of merger is with Bijoux, which is known as a conglomeration. A conglomeration is a merger between companies that do not have the same business areas. The second is a horizontal merger with Stopper,Inc. A horizontal merger occurs with companies that distribute the same products and the same market(McClure, 2013). McClure, B. (2013, May). Mergers and acquisitions: Definition. Retrieved from http://www.investopedia.com/university/mergers/mergers1.asp

After consultation with corporate counsel and outside financial advisors, the Board of Directors decides to consider the following four responses to the Bijoux proposal. a. AgroVate’s board can consider a shareholder rights plan, also known as a poison pill. If Bijoux acquires more than 20% of the stock, current shareholders (but not Bijoux) will be given an additional share for each share they own (a split). This means Bijoux would have to buy many more shares in order to gain control, thus substantially driving up the cost to Bijoux to acquire AgroVate and making the acquisition too expensive. The board can