What Causes A Hostile Takeover?

What Causes A Hostile Takeover?
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  1. There is no one particular reason as to why this occur but we can say that this is like any takeover, just that it is opposed by the target company. A hostile takeover bid occurs when an entity attempts to take control of a publicly traded company without the consent or cooperation of the target company’s board of directors. Since the board won’t give its approval, various other tactics like a tender offer or proxy fight may be adopted. Such an acquisition can take place by a company because it wants access to its distribution channels, customer base, brand name, or technology.

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