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Defensive Acquisition
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Defensive Acquisition
An acquisition that a company makes in order to keep from being taken over. For example, if Company A may acquire a much smaller Company B, which will make Company A so large that any takeover will result in the acquirer running afoul of antitrust laws. A defensive acquisition most commonly applies to acquiring a company, but it may also involve acquiring a particular product that will make the company more difficult to take over. It is an example of an antitakeover measure.

defensive acquisition
A firm or an asset purchased by a potential target of a takeover in order to make itself less desirable to raiders. For example, a target company might purchase another firm engaged in the same business as the raider in order to create an antitrust problem for the raider. See also raider, target company.


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However, that is likely to change over the coming days as Birmingham look to add Johnson to a basket of defensive acquisitions that already includes Stephen Carr, Scott Dann and Giovanny Espinoza, not forgetting the opportunity to look at trialist Bobo Balde when they resume for pre-season next month.
Fitch expects less money will be spent on defensive acquisitions (high priced purchases of low/no profit online real estate) in 2010 versus the last few years.
 
 
 
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