"Opponents argue hostile takeovers
are costly, frequently mis-directed and the cause of systemic problems in the corporate sector, including, perhaps, short-termism.
In their remarks in connection with Livedoor's high-profile hostile takeover
bid to acquire Nippon Broadcasting Systems Inc., Horie and Murakami asserted that a company should not go public if it does not want to become a takeover target.
In particular hostile takeover
attempts have mostly failed and the number of hostile takeovers
remains very low.
"It was wrong that a debt-laden American multi-national was able to stage a hostile takeover
of a successful British icon, dear to the hearts of the people of Birmingham and Britain and with a great tradition of philanthropy."
THE BUSINESS WORLD continues awash in hostile takeovers
. Gulf Oil, for example, was an $11 billion target before being pressured into a $13 billion deal with Socal.
The demutualization trend and other industries struggling through hostile takeovers
, however, clearly threaten this goal.
As hostile takeovers
became common in the mid- to late 1980s, due in part to the ease of obtaining financing, companies began to understand that ESOPs had a collateral benefit: a large number of shares in presumably friendly hands.
In discussing this issue, the staff member also noted that the legislative history does not include a statement exempting hostile takeovers
, because it is difficult to determine when a hostile takeover
becomes non-hostile.(67) A hostile takeover
presents a peculiar problem in interpreting the meaning of the term "plan."(68) If a distributing corporation distributes a controlled corporation specifically to avoid a hostile takeover
(a valid business purpose under Rev.
Structured properly and in accordance with FASB guidelines, the sale leaseback is a means of off-balance sheet financing, which can allow the corporation to improve its return on assets, obtain long term low cost financing, enhance the balance sheet, avoid hostile takeovers
, create profit, and raise cash.
(Shad arrived with Reagan and left five months before George Bush was elected.) Those were tumultuous times for the SEC, for they gave rise to among other things) corporate raiders, junk bonds, insider trading scandals, leveraged buyouts, the wild bull market and subsequent crash of 1987, hostile takeovers
, and so on.
It might be hard to top the 80s with its friendly and hostile takeovers
, leveraged buy-outs and aggressive maneuvers by foreign rubber firms in the North American market.
This concern peaked during the Great Depression, rose again during the 1960s, and resurfaced in the 1980s with the advent of hostile takeovers
. The recent concern has stimulated new empirical work asking whether managers indeed fail to serve their shareholders, and how financial markets discipline such managers.