A defensive tactic used by a targeted firm in a hostile takeover situation. In a Pac-Man defense, the target firm turns around and tries to acquire the other company that has made the hostile takeover attempt. This term has been accredited to Bruce Wasserstein, chairman of Wasserstein & Co.
Taobiz explains Pac-Man Defense
This term comes from the Pac-Man video game. In the game, once Pac-Man eats a power pellet he is able to turn around and eat the ghosts that are chasing after him in the maze.
When one company makes an unsolicited and aggressive bid on another publicly traded company, the takeover attempt may not be welcomed by the targeted firm. In an attempt to scare off the would-be acquirers, the takeover target may use any method in an attempt to acquire the other company, including dipping into its war chest for cash to purchase the other company's stock.
投融网(www.ipo.hk)，创建于2011年，十年如一日，专注专业：企业投融资、IPO上市咨询辅助、定增、供股、发债、并购、重组、买卖壳资源、财经公关等业务，一站式金融机构及业务对接平台。
投融资俱乐部，入驻120万+ 机构会员，会员可发布及对接投融资需求、筛选优质项目、企业上市辅导、兼并收购等投行业务信息，在线结识更多人脉，构建投融资与上市服务生态圈。
欢迎各类机构洽谈合作。
邮箱：service@ipo.hk
电话：0755-33572246
