What is the meaning of Pac-Man Strategy?

Pac-Man Strategy is the target company attempts to takeover the hostile raider. This happens when the target company is larger than the predator. The name comes from the video game. It is another takeover repellent devised by management. For example, Bendix Corp. Tried to take control of Martin-Marietta by a tender offer. When the takeover effort failed, Martin-Marietta counterattacked by buying Bendix stock in an attempt to take control of Bendix. Thus, Martin-Marietta became the PacMan. To counter, Bendix successfully courted Allied Corporation to come to its rescue. Allied bought Bendix so that Martin-Marietta could not buy enough control. In this case Allied was a White Knight.