hostile tender offer

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Hostile Tender Offer

In a hostile takeover, an offer to buy the target company's stock from shareholders. A hostile tender offer occurs when the target company's board of directors has recommended that shareholders not sell, and it will usually try to make a better offer than the hostile tender offer to buy out shareholders and avoid being taken over. The success of a hostile tender offer depends on how high it is compared to what the board of directors is willing to offer. See also: Antitakeover measure.

hostile tender offer

An offer to purchase shares from a firm's stockholders when directors of the target firm have recommended that stockholders not sell their stock. Hostile tender offers sometimes cause the directors of the target company to seek a better offer from another party. Compare tender offer. See also unfriendly takeover.
References in periodicals archive ?
Like Mitchell and Lehn (1990), I classify firms in the sample as hostile targets when they are targets of successful or unsuccessful hostile tender offers, unsolicited and rejected offers, and proxy contests.
Control transactions--a category that includes friendly mergers, hostile tender offers, management buyouts, freeze-outs, and sales of control by a controlling shareholder--stand at the conceptual and practical center of corporate law and governance.
A decade ago, we were talking about incentive compensation, strategic planning, management information systems, hostile tender offers, and multinational organizations as the "new" challenges.
The restructuring phenomenon has raised numerous issues involving securities regulation, including the desirability of additional regulation of both bidder and target tactics in hostile tender offers, possible protections for bondholders in restructurings, and the adequacy of disclosure in management buyouts.
Once such an agreement had been arranged, National Starch hired an investment banking firm to evaluate the offer, provide a fairness opinion and assist in the event of any hostile tender offers.
Wee has extensive experience representing investment banking clients in connection with public mergers, friendly and hostile tender offers, and private acquisitions across a broad range of industries.
15) Between the Delaware Supreme Court decisions in Revlon and Time-Warner, target boards frequently responded to hostile tender offers by proposing a financial restructuring of the corporation, while using takeover defenses to effectively force acceptance of their proposed restructuring.
As a consequence, the legal and economic conditions in the early 1990s may appear to favor proxy contests over hostile tender offers as a means to ensure that managers maximize firm value.
Through early support for buyout funds, hostile tender offers and, later, shareholder resolutions and proxy battles, large investors created the "Institutional Investor Rule.
Both as an advisor to companies and as member of the senior management team, Bob has hands-on experience in managing corporate activities such as initial public offerings, introducing new management, repositioning corporate strategy, turnarounds, acquisitions and divestitures, balance sheet recapitalization, shareholder proxy fights, and hostile tender offers.
I next explore the requisite features of financial markets that can lead to the conclusion that shareholders might be better served by a legal regime of management discretion in determining the outcome of hostile tender offers.