Hostile takeover

Hostile takeover,

Definition of Hostile takeover:

  1. Acquiring a firm despite the disapproval of, or open resistance from, its board of directors. The acquirer (raider) usually takes the takeover offer direct to the target firms stockholders (shareholders) or seeks their approval to remove the obstructing board members.

  2. A hostile takeover is the acquisition of one company (called the target company) by another (called the acquirer) that is accomplished by going directly to the company's shareholders or fighting to replace management to get the acquisition approved. A hostile takeover can be accomplished through either a tender offer or a proxy fight.

  3. A takeover which is opposed by the company to be bought; frequently attributive, especially in hostile takeover bid.

  4. The key characteristic of a hostile takeover is that the target company's management does not want the deal to go through. Sometimes a company's management will defend against unwanted hostile takeovers by using several controversial strategies, such as the poison pill, the crown-jewel defense, a golden parachute, or the Pac-Man defense.

  5. (In extended use) any assumption of control which is undertaken by stealth, or is strongly opposed or rejected by those it affects.

How to use Hostile takeover in a sentence?

  1. A hostile takeover is when an acquiring company attempts to takeover a target company against the wishes of the target company's management.
  2. Sometimes businesses get new leadership and its not always in the friendliest way but you must deal with the hostile takeover .
  3. Target companies can use certain defenses, such as the poison pill or a golden parachute, to ward off hostile takeovers.
  4. The hostile takeover was almost complete finally and the face of the industry was almost completely changed for the better.
  5. If you ever find yourself in the middle of a hostile takeover in the business world you must align yourself with the winning side.
  6. An acquiring company can achieve a hostile takeover by going directly to the target company's shareholders or fighting to replace its management.
  7. A tender offer and a proxy fight are two methods in achieving a hostile takeover.

Meaning of Hostile takeover & Hostile takeover Definition