friendly takeover(redirected from Friendly Mergers)
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Merger when the target firm's management and board of directors is in favor of the takeover. Antithesis of hostile takeover.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The acquisition of a firm with approval of the acquired firm's board of directors. Compare unfriendly takeover.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.