Friendly Merger


Also found in: Dictionary, Thesaurus.

Friendly Merger

A business combination that the management of both firms believes will be beneficial to stockholders.

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.
References in periodicals archive ?
Simon, a real-estate investment trust that is the nation's leading shopping center developer and operator, was rebuffed in friendly merger talks and subsequently made a bid for outstanding Taubman shares at a price higher than they had ever traded.
After negative financial market developments and strong political opposition, the Finnish financial conglomerate Sampo withdraws its friendly merger bid for the Norwegian insurance company Storebrand made in May 2001.
We are witnessing two parties to an agreed, friendly merger, taking dramatically different positions with antitrust authorities on points as basic as to the definition of the market in which they operate.
LONDON - P&O Princess Cruises PLC faces a possible mutiny today when it asks shareholders to approve a friendly merger that would create a new world leader in the cruise ship business.
As we have said from the beginning, Alltel would like to sit down with the CenturyTel management and discuss Alltel's proposal for a friendly merger of our two companies," Alltel said in a news release.
As a result of this friendly merger (it was agreed to by BT's top execs), it appears that a Toyota/BT combination next year easily will be in the running for a second place finish in our rankings.
Cyprus had planned a friendly merger with Asarco that was announced in July, but in mid-August Phelps announced its hostile bids for both companies.
Groupe Vid[acute{e}]otron lt[acute{e}]e's friendly merger with Rogers Communications Inc.
It's clear that our friendly merger with Warner-Lambert is strategically and financially compelling and that it will create enormous near- and long-term value for shareholders," said John Stafford, chairman, president and chief executive officer of AHP.
Elf Aquitaine shareholders overwhelmingly approved the friendly merger agreement concluded between the two groups on September 13.
Instead, it developed a "presence of a significant future benefit" test in holding that the costs incurred in a friendly merger were subject to capitalization.
Some analysts believe Argos boss Stuart Rose would rather engineer a friendly merger with them than surrender to GUS.
Full browser ?