Takeover Attempt


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Related to Takeover Attempt: takeover bid

Takeover Attempt

An effort by a corporation or, less commonly, an individual, to purchase a majority of the stock in a publicly-traded company. A takeover attempt may be friendly or hostile but, in order to be successful, must be approved by a majority of shareholders (or, more specifically, the holders of a majority of shares).
References in periodicals archive ?
The close relationship in terms of interlocking shareholdings between Japanese financial institutions and their industry clients, as well as the close relationship with government regulatory agencies, has worked to protect entrenched Japanese management against takeover attempts.
In TAM 9043003, the IRS stated that expenses incurred by a corporation to resist an unfriendly takeover attempt are deductible as ordinary and necessary business expenses under section 162.
Thus, a takeover attempt apparently is not hostile unless the suitor proceeds with a tender offer.
Letter Ruling 9144042 allows taxpayers to demonstrate that the services received for professional fees incurred in a takeover attempt do not provide a long-term benefit, and taxpayers that can make such a showing still have the opportunity to currently deduct such fees.
Second, the corporate law of Delaware and other states clearly favors defensive strategies that are implemented well in advance of a hostile takeover attempt.
Investors have seen the stock dive in value in recent days after the failed takeover attempt.
Under the measures, a buyer of a large stake in a company is required to report the purpose of the takeover attempt and other related information to the target firm in advance.
The repurchase plan was part of an effort to thwart the takeover attempt by AlliedSignal Inc.
A takeover attempt opposed by the target company's management or board of directors is a hostile or unfriendly takeover.
Thus, expenditures for professional fees incurred in a takeover attempt (which ostensibly has been labeled as either hostile or friendly) will not uniformly be classified as either currently deductible under Sec.
Regardless of whether a takeover attempt is "friendly" or "hostile," the directors will be compelled to take several takeover-related actions.
The company continues to believe that a rights plan is a valuable means of protecting the long-term interests of the company and its shareholders in the event of an unsolicited takeover attempt.