In addition to outlining what this Article seeks to achieve, it is also important to define what this Article will not achieve: namely, any investigation into the policy merits of hostile acquisitions, or mergers and acquisitions generally, and whether their possible advent in India would have beneficial or disadvantageous consequences.
This Part identifies and assesses various hurdles relating to acquisition finance, and it concludes by finding that these apply equally to friendly and hostile acquisitions and do not hinder the foreign hostile acquirer from tapping foreign financing avenues.
Several restrictions on acquisition finance make hostile acquisitions of Indian corporations seem unattractive.
Further, these restrictions do not apply to hostile acquisitions alone but also to friendly deals, which continue to take place despite these restrictions.
149) Potential enforcement of the new law carries with it the hope that hostile acquisitions, especially inbound acquisitions involving foreign investment, might be somewhat facilitated.
5) Asset Alienation: TRAC has recommended that acquirers be permitted to declare their intention to alienate "material assets" of the target, (233) which may enhance their ability to raise finances for hostile acquisitions.
It examines two latent hostile acquisition defenses inherent in the structuring of Indian corporations--one based on Press Note 2 (2009) and the other on the size of the investment that the hostile acquirer proposes to make.
With respect to the steps required to consummate a hostile acquisition in India, the Indian regulatory landscape can be understood from two perspectives.
52) Alternatively, if a general meeting is fast approaching, the hostile acquirer can take this step first, and seek to gain proxy access to set the hostile acquisition in motion.
5% of the sample set, are vulnerable to hostile acquisition.
white knights), the evidence shows that white knight synergies are insignificantly different from synergies generated in hostile acquisitions.
2 Indeed, Bhagat, Shleifer, and Vishny |4~ analyze hostile takeovers during the period 1984-1986, and find that white knight acquisitions lead to fewer layoffs (blue collar and white collar) than successful hostile acquisitions or cases in which the target remained independent.