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 Court in INDOPCO concluded that investment banker fees, legal fees, proxy costs, and SEC fees incurred by a target corporation in a friendly takeover must be capitalized if the takeover produces significant future benefits.
stepped up its global expansion drive Friday with a deal to buy Bare Escentuals of the United States in a friendly takeover worth 1.
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).
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.
a major game software developer, said Friday it has dropped its friendly takeover bid for smaller rival Tecmo Ltd.
6 billion friendly takeover bid has been announced by Xstrata Nickel for all of the outstanding shares of LionOre Mining International Ltd.
According to weekend reports, he would prefer a friendly takeover, but is prepared to go hostile if the Dutch government, which owns ten per cent of TNT, opposed a deal.
After a series of market moves that included subsequent sale of shares to Tongil employees, a friendly takeover ensued, and the two companies merged.
Under the terms of the original offer, it would have been voided if PeopleSoft modified the terms of its friendly takeover of JD Edwards, which is exactly what PeopleSoft has done.
RWE was reported to have approached the company to discuss a friendly takeover in a pounds 2.
The result of a Viag/Veba merger, EON made a friendly takeover bid on 9 April for Powergen, the UK's second leading company in the power sector.