What is the goal of a Pac-Man defense in response to a hostile takeover?

The goal of a Pac-Man defense is for the target company to turn the tables on the acquiring company by attempting to buy the hostile bidder instead. This strategy can help to ensure that the original company remains independent by taking the initiative and presenting a counter-offer. The idea is that by making a bid for the hostile company, the target can disrupt the takeover attempt and potentially create a situation where the hostile bidder has to reconsider its position. This approach puts pressure on the acquirer and can lead to negotiations that may be more favorable to the target company, demonstrating a proactive stance in defending against unwanted takeover attempts. By focusing on acquiring the hostile bidder, the target company seeks to reinterpret the narrative of the takeover, turning what might be perceived as a loss of control into an opportunity for strategic growth.