friendly takeover(redirected from Friendly Takeovers)
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Related to Friendly Takeovers: hostile takeover, takeover defense, Hostile bid, Hostile Acquisitions, Takeover Bids
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.
The acquisition of a firm with approval of the acquired firm's board of directors. Compare unfriendly takeover.