How Do You Fight A Hostile Takeover?

How Do You Fight A Hostile Takeover?

1 Answer

  1. There are many ways to stop or fight a hostile takeover. Starting with, Poison Pill Defense. It is a powerful tool which is a distribution to the target’s shareholders of the rights to purchase shares of the target or the merging acquirer at a substantially reduced price. A company can also go for stock repurchase which is a purchase by the target of its own-issued shares from its shareholders. Next there is Staggered Board Defense. In this a company might segregate its board of directors into different groups and only put a handful up for re-election at any one meeting. Another way is White Knight Defense, it is a strategic merger that does not involve a change of control and relieves the target’s management of the responsibility to seek the best price available. There are many other ways you can try like Pacman, lockups, Greenmail Defense etc.

    • 0

Leave an answer

You must login to add an answer.