Match List - I with List - II:

Choose the correct answer from the options given below:

Correct option is B

The correct match is:

1. (A) Divestitures → (III) Selling of some assets of the firm
   Divestiture is the process where a company sells off a portion of its business, such as a division, asset, or subsidiary. This is often done to streamline operations, raise capital, or focus on core areas.

2. (B) Pac-man Defence → (IV) Target company making a counter bid for raiders company
   This is a hostile takeover defense strategy where the target company tries to turn the tables by attempting to acquire the company that is trying to acquire it. The name comes from the Pac-Man video game where the character eats its enemies.

3. (C) Spin-off → (II) Does not bring any cash to the parent company
   In a spin-off, a company creates a new independent entity by separating part of its business. The new shares are distributed to existing shareholders, and no cash is received in return.

4. (D) Split-up → (I) The parent firm no longer exists
   A split-up refers to breaking a company into two or more independent companies. The original parent company ceases to exist, and shareholders receive shares in the new entities.

Information Booster:

1. Divestiture is a strategic move for capital restructuring, paying off debt, or shifting business direction.

2. The Pac-man defence is rarely used but signals strong resistance and requires high financial capability.

3. A Spin-off can increase shareholder value by allowing both companies to focus independently on core areas.

4. A Split-up is the most extreme form of corporate restructuring, usually due to strategic realignment or pressure from investors.

5. These concepts are commonly seen in mergers & acquisitions, corporate restructuring, and hostile takeover scenarios.

6. Understanding these helps in strategic decision-making in corporate finance, investment banking, and business analysis.