hostile takeover

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Hostile takeover

A takeover of a company (usually made by an open tender offer to shareholders) against the wishes of the current management and the Board of Directors by an acquiring company or raider.

Hostile Takeover

The acquisition of one company by another without the consent of the target company's board of directors. Generally speaking, a hostile takeover involves the acquiring company buying stock directly from shareholders, sometimes by offering a particularly high price. The acquiring company may buy up to 5% of the target company without registering the move with the SEC. See also: Friendly takeover, Corporate raider.

hostile takeover

References in periodicals archive ?
In particular hostile takeover attempts have mostly failed and the number of hostile takeovers remains very low.
It was wrong that a debt-laden American multi-national was able to stage a hostile takeover of a successful British icon, dear to the hearts of the people of Birmingham and Britain and with a great tradition of philanthropy.
LABOUR candidates in the West Midlands election battlefield have unveiled details of plans for key changes to company law to prevent another Cadbury-style hostile takeover in the UK.
fund launched a hostile takeover bid for Japanese noodle maker Myojo Foods Co.
As hostile takeovers became common in the mid- to late 1980s, due in part to the ease of obtaining financing, companies began to understand that ESOPs had a collateral benefit: a large number of shares in presumably friendly hands.
In addition, the IRS issued an industry specialization program (ISP) paper on April 24, 1991, relating to costs incurred by corporations in defending themselves against hostile takeovers, including when a corporation is taken over in a leveraged buyout.
As for Shad, he winds up looking more foolish for neglecting a sexual harassment suit brought against the agency than for failing to crack down on hostile takeovers.
Goodyear survived a hostile takeover attempt but at a serious cost.
The third reason why planning for hostile takeovers is important is that many effective defensive measures take substantial time and effort to put in place.
The bid, however, has already been turned down twice by the target company which also adopted a poison pill to avoid a hostile takeovers.
He urged the Government to act after Business Secretary Vince Cable announced he was ready to change the law to make hostile takeovers more difficult.