Key issues: What constitutes an optimal bidding strategy? What are the gains and losses from merger and acquisition (M&A) activity? How should the board react to a hostile takeover bid, and what are the value implications of corporate defensive tactics, such as poison pills and break-up fees? What are the governance characteristics of leveraged buyouts (LBOs) and highly leveraged transactions (HLTs)? What is the governance role of vulture funds? What are the governance implications of alternative bankruptcy codes?
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