BARRIERS TO HOSTILE ACQUISITION
: ARE THEY INSURMOUNTABLE?
The Japanese are not ready for U.S.-style hostile acquisitions
or American management tactics.
Surprisingly, despite their important implications for the interplay between negotiated and hostile acquisitions
, standstill agreements have not received attention from modern academic commentators.
The Clinton Administration's original proposal had stated that "a hostile acquisition
of the distributing or controlled corporation commencing after the distribution will be disregarded." See Treasury Explanation of Revenue Proposals 62.
Dutch-based hard coal producer New World Resources (PRG:BAANWR), or NWR, said today that its shareholders have approved the plan for its PLN3.427bn (USD1.15bn/EUR863m) hostile acquisition
of Polish coal miner Bogdanka (WAR:LWB).
However NRG condemned the proposals as "inadequate" and "not in the best interest of NRG and its stockholders." The independent energy firm said Exelon was seeking to influence the Board to favor its hostile acquisition
But the reports underscore a change in the view of Vodafone as a predator, immortalised by its historic pounds 123 billion hostile acquisition
of Mannesmann in 2000.
Martin Sorrell (WPP): Twelve years ago we were a $1.5 million dollar cap wire basket manufacturer, and we took over companies by hostile acquisition
. So our task was exceptionally difficult because we'd grown rapidly by acquisition, and we had to deal with companies that, frankly, didn't choose to be where they were.
Often in a friendly or hostile acquisition
, the change in ownership of the target company will trigger severance payments to key employees.
Based in the Netherlands and run from offices in Cecil, Mylan, failed last year in a hostile acquisition
of Ireland-based Perrigo Co..
The academics - Martin Conyon, of Warwick Business School, Sourafel Gimma, Steve Thompson and Peter Wright of Nottingham University - said: "Following a hostile acquisition
, it seems reasonable to expect that rising productivity and the search for economies would be accompanied by job losses.
After a bitter hostile acquisition
battle that came to a peaceful end in January, Suncor completed its deal to acquire another Syncrude partner, Canadian Oil Sands, last month.