friendly takeover


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Related to friendly takeover: hostile takeover, Friendly Merger, Hostile Acquisition

Friendly takeover

Merger when the target firm's management and board of directors is in favor of the takeover. Antithesis of hostile takeover.

Friendly Takeover

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.

friendly takeover

The acquisition of a firm with approval of the acquired firm's board of directors. Compare unfriendly takeover.
References in periodicals archive ?
The Supreme Court is sure to be asked to resolve the question of whether fees incurred in a hostile takeover should be given different tax treatment from those incurred in a friendly takeover. The opportunity this presents the court to narrow (or widen) the Indopco precedent should affect IRS efforts to support capitalization of a wide variety of expenses.
Commissioner,(6) the Third Circuit, in affirming a Tax Court decision, held that a corporation must capitalize consulting fees, legal fees, and other expenses incurred in deciding whether to accept a friendly takeover bid.
was acquired in a friendly takeover by the largest publicly held company in Australia, Broken Hill Proprietary Ltd., we set up a number of activities for our directors which played an important role in ultimately gaining more than 98% of our shareholders approving the merger, approval by the Public Utility Commission (due to our gas utility subsidiary), and overwhelmingly positive response in the Hawaiian community.
that Zijin has received the second of three required regulatory approvals from the People's Republic of China for Zijin's proposed friendly takeover bid of Nevsun.
Vancouver's 3TL said it has inked a non-binding letter of intent (LoI) to acquire the entire issued and outstanding stocks of RewardStream under a friendly takeover.
26 July 2013 - Marco Tronchetti Provera, the chairman of Pirelli & C SpA (BIT:PC), and his bidding allies have been cleared to proceed with their friendly takeover offer for Camfin SpA (BIT:CMF), the holding company for the Italian tyre manufacturing giant.
The European Commission will announce its decision on Ryanair's friendly takeover bid on Aer Lingus, the other Irish airline in which it holds a 29.82% stake (see Europolitics 4585), on 27 February.
"With Macquarie trading below book value, and more importantly its likely realizable break-up value, a friendly takeover bid could not be ruled out," said CLSA banking analyst Brian Johnson.
Commenting on the announced on Monday plans for a friendly takeover of French peer Rhodia (EPA:RHA), the Dutch bank said the new entity will become a big player with good exposure to fast-growing markets, adding it, however, has other favourites in the sector.
stepped up its global expansion drive Friday with a deal to buy Bare Escentuals of the United States in a friendly takeover worth 1.7 billion dollars.
LG said it plans to boost its plasma TV sales in emerging markets such as Asia, the Middle East and Central and South America by focusing on screen sizes of at least 50 inches.Australia has approved China's Zijin Mining Group's (HKG:2899) (SHA:601899) A$545 million friendly takeover for Australia's Indophil Resources NL (ASX:IRN).
South Korea ended a losing streak in overseas resource deals with the C$1.8 billion ($1.7 billion) friendly takeover of Canada's Harvest Energy Trust, securing oil and gas reserves as well as a refinery that Harvest could not afford to expand.