friendly takeover

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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 strategies for surviving a friendly acquisition are similar to those for a merger.
9 (1999), the Tax Court determined that officers' salaries and legal fees incurred by a target company in a friendly acquisition were required to be capitalized, because they were sufficiently related to an event that produced a significant long-term benefit.
Careful planning is necessary when a company incurs expenses to resist a hostile takeover while implementing a friendly acquisition.
1) Justice Blackmun, writing for a unanimous court, affirmed the disallowance of deductions claimed by the taxpayer for legal fees and investment banking fees incurred by Indopco's predecessor, National Starch and Chemical Corporation, in connection with the friendly acquisition of National Starch by Unilever United States, Inc.
has gained a friendly acquisition proposal that values the Calgary-located firm at $575 million, excluding debt obligations.
In that case, the Supreme Court decided that a taxpayer could not deduct the costs it incurred to facilitate a friendly acquisition.
Recently, the Tax Court in the National Starch & Chemical case upheld the IRS's assertion that fees (including the cost of a fairness opinion) incurred in a friendly acquisition must be capitalized.
33) that legal and investment advisory fees incurred in a friendly acquisition do not qualify for deduction under Sec.