What is a valid defence available to the offeree during the offer process?

A valid defense available to the offeree during the offer process is referral to the CMA (Competition and Markets Authority). This option is significant because the CMA is responsible for ensuring market competition and protecting consumer interests in the UK. If an offeree believes that an offer may raise antitrust concerns or otherwise violate competition laws, they can refer the matter to the CMA for review. This referral can serve as a legitimate basis for contesting the terms of an offer, especially if it is perceived to potentially create monopolistic practices or reduce market competition.

The other options, such as increasing share prices, expanding stock options, or moving to a different exchange, do not constitute legitimate defenses in the context of the offer process. Increasing share prices may indicate market confidence but do not address any competitive or legal issues surrounding an offer. Expanding stock options is often a corporate strategy but does not provide a basis for contesting an offer legally. Similarly, moving to a different exchange may be a strategic business decision but does not directly relate to defending against the terms or validity of an offer. Thus, these options lack the legal grounding necessary to be considered valid defenses during the offer process.