The term Hostile Takeover refers to the situation in
which 1. the Board of Directors of the target corporation rejects the buyout offer, fights the acquisition and recommends to the shareholders not to accept the offer by the acquiring company, but the acquirer continues to pursue it, or 2. makes the offer directly after having announced its firm intention to make an offer.
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
A great number of protective mechanisms against unwanted or
unfriendly takeovers exist. Often these antitakeover tactics appear to serve
the needs of managers (risking to lose their job) rather than those of the
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.
Anti Hostile Takeover Mechanisms Special Interest Group
Special Interest Group (35 members)
and Acquisitions |
Leveraged Buy-Out |
Management Buy-out |
Integration Approaches |