What Causes A Hostile Takeover?

What Causes A Hostile Takeover?

1 Answer

  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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