Home > Blossary: Hostile Takeovers and Defense Strategies
Mergers and acquisitions in business can be friendly or hostile. In a hostile takeover, the acquirer attempts to acquire the target company either by a tender offer or a proxy fight to replace the management. This Blossary attempts to shed more light on the meaning of hostile takeovers and defense strategies.

Category: Business

12 Terms

Created by: Sanket0510

Number of Blossarys: 22

My Terms
Collected Terms

This method discourages the takeover by offering high lucrative compensations to the top management in the event of them losing their jobs in case of a takeover.

Domain: Business services; Category: Mergers & acquisitions

Implementing a Super majority clause, which requires 70-80% of stockholders' approval to pass the resolution of takeover. This makes it more difficult for the potential acquirer to convince the ...

Domain: Business services; Category: Mergers & acquisitions

This defense strategy is often complemented with the poison pill technique. This technique, again aims at buying more time and increasing the difficulty for the predator. Staggered Board requires you ...

Domain: Business services; Category: Mergers & acquisitions

For a short time, you can entangle the bidder in a legal suit, by challenging the validity of the takeover; thus, helping the management of the target company to buy time for other defense ...

Domain: Business services; Category: Mergers & acquisitions

Tactic to deter a hostile takeover, in which a company sells off its most attractive assets to a friendly third party or a spin-off company. By doing so, the purchase of the company will seem ...

Domain: Banking; Category: Mergers & acquisitions Collected Term

A potential acquirer that is viewed more favorably by a target firm’s management and board than the initial bidder.

Domain: Banking; Business services; Category: Mergers & acquisitions Collected Term

Repurchase by a company of shares acquired by a raider, with a view to preventing a complete takeover. Usually involves payment of a price considerably above the market value of the shares involved.

Domain: Banking; Category: Investment banking Collected Term

Member comments


( You can type up to 200 characters )

Post  
My other Blossarys

Dreams are one of the last great unmapped ...

Category: Science

By: Sanket0510

Here are some of the terms that might come in ...

Category: Languages

By: Sanket0510

This Blossary features, the different languages ...

Category: Languages

By: Sanket0510

Hypertension (HTN) or high blood pressure, ...

Category: Health

By: Sanket0510