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Anti Hostile Takeover Mechanisms |
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Description of Anti Hostile Takeover Mechanisms. Explanation. |
Definition Hostile Takeover. Description.
The term Hostile Takeover refers to the situation in which one company tries to acquire another company without the approval of the target corporation's Board of Directors. See also: Friendly Takeover.
A Hostile Takeover normally occurs only with publicly traded companies, as it requires the acquirer to bypass the board of directors and purchase the shares from other sources.
Anti Hostile Takeover Protection Mechanisms or Poison PillsA great number of protective mechanisms against unwanted or unfriendly takeovers exist. Often these antitakeover tactics appear to serve the needs of managers (risking to loose their job) rather than those of the shareholders. See: Incentives.
Back-End Plan
| Bankmail Engagement
| Crown Jewel Defense
| Flip-in |
Flip-over |
Golden Parachute |
Goodbye Kiss |
Gray Knight |
Greenmail |
Killer Bees |
Leveraged Recapitalization
| Lobster Trap |
Pension Parachute |
People Pill |
Poison Put |
Safe Harbor |
Scorched-Earth Defense
| Staggered
Board of Directors |
Standstill Agreement
| Subscription Right
| Targeted Repurchase
| Voting Rights Plan
| White Knight The above mechanisms may be or may not be perceived as legal or ethical depending on the legal system and culture. It's interesting from a Framing perspective, that many of the terms for anti-takeover techniques have very negative associations attached to it. Also called Shark Repellent.
Compare with: Mergers and Acquisitions | Leveraged Buy-Out | Management Buy-out | Acquisition Integration Approaches | Outsourcing | Organizational Resilience |
| Return to Management Hub: Ethics & Responsibility | Finance & Investing | Leadership | Strategy
More Management Methods, Models and Theory | Return to Management Dictionary | |
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End of description Anti Hostile Takeover Mechanisms. An explanation. |
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