Problem
Clover Limited is a dairy company which is in the process of negotiating the acquisition of Bakers Limited. The management estimates that the acquisition will result in synergistic benefits of R50 000. Clover Limited is prepared to make a cash payment of R180 000 for Bakers Limited. Clover Limited currently enjoys an earnings per share of R1.50 with a market value of R2 per share. Whereas, Bakers Limited's earnings per share is 80 cents and the market value per share is R1.15. The total number of shares are 75 000 shares and 50 000 shares for Clover Limited and Bakers Limited respectively.
Assume that Clover Limited proposes to its shareholders that they are willing to peruse a hostile takeover of Bakers Limited. You are required to discuss six possible takeover defenses that Bakers Limited can utilize as a tactic to resist the takeover attempts of Clover Limited.