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Friendly Takeover
(redirected from Friendly Acquisition)

   Also found in: Dictionary/thesaurus 0.01 sec.
Friendly takeover
Merger when the target firm's management and board of directors is in favor of the takeover. Antithesis of hostile takeover.

Friendly Takeover
The acquisition of one company by another with the full knowledge and consent of the target company's board of directors. Generally speaking, a friendly takeover requires the approval of shareholders in addition to the board of directors, but, in this case, shareholders tend to follow the board's lead. This is because, in a friendly takeover, the acquiring company offers a premium to the current stock price for each share. See also: Hostile takeover.

friendly takeover
The acquisition of a firm with approval of the acquired firm's board of directors. Compare unfriendly takeover.


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For over half a century, Georgeson has specialized in complex solicitations such as hostile and friendly acquisitions, proxy contests and takeover defenses.
In friendly acquisition, companies executives negotiate whereas in hostile acquisition, if the bidder continue to seek it even if the company (or target) is unwilling to agree.
The deal marks the latest in a recent string of foreign takeovers of Canadian companies, including a bid for Nova Chemicals by Abu Dhabi's International Petroleum Investment Co, friendly acquisition of Bow Valley Energy by Britain's Dana Petroleum and a hostile play for UTS Energy Corp by Total of France.
 
 
 
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