Locust Industries makes Lo-Down, a highly profitable medicine to lower high blood pressure. The company is in danger of being acquired by its rival, Health Fits, which makes Slide, Lo-Down's major competitive product
Not wanting to be acquired, Locust Industries has paid to build and staff two new facilities to research and develop new medicines. Locust's actions are an example of the white knight way to resist a takeover.
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: The white knight way of resisting a takeover involves finding a more acceptable buyer. Locust Industries launched a poison pill; that is, the company took on more debt to make the company less attractive.
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