Hostile Takeover
A hostile takeover occurs when one company tries to acquire another against its wishes. This often happens when the target company's management rejects the offer, prompting the acquirer to directly approach shareholders, encouraging them to sell their shares. The acquirer may use various tactics, such as buying shares on the open market or proposing a higher offer to attract shareholder support. Hostile takeovers can lead to significant changes in management and strategy for the acquired company, as the new owners seek to implement their vision.
Additional Insights
-
A hostile takeover occurs when one company attempts to acquire another against the wishes of its management and board. Typically, the acquiring company buys a significant number of shares from the target company's shareholders or makes a direct offer to the shareholders, bypassing the management. This often leads to a conflict, as the target company may resist the takeover, believing it's not in its best interest. Hostile takeovers can change how businesses operate and lead to significant shifts in company leadership and strategy.