friendly takeover

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Related to Friendly Takeovers: hostile takeover, takeover defense, Hostile bid, Hostile Acquisitions, Takeover Bids

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.
References in periodicals archive ?
The Court in INDOPCO concluded that investment banker fees, legal fees, proxy costs, and SEC fees incurred by a target corporation in a friendly takeover must be capitalized if the takeover produces significant future benefits.
Fees incurred by a target corporation in a friendly takeover must generally be capitalized, because such takeovers usually produce significant long-term benefits.
The Tax Court ruled that this was actually a friendly takeover and INDOPCO should apply.
While National Starch serves as clear and compelling authority for the capitalization of certain expenses incurred incident to a friendly takeover, the deductibility of a target's takeover-defense expenses remains an unsettled issue.
The IRS noted that the Tax Court in National Starch had denied the deduction of a target's expenses incident to a friendly takeover, including the cost of a fairness opinion.
a friendly takeover as in the National Starch case.