Hostile Takeovers

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Hostile Takeover
Introduction:
When one company acquires another, without any deal or coming by an agreement to target the company’s management is called “Hostile Takeover”. The main characteristic of hostile takeover is to grab the company’s management, so that they could run the company and can generate more profits. Company uses two ways to hostile takeover that are: Tender offer and Proxy Fights. Hostile takeover have been a part of corporate world for many years. There has been a steady increase in the number of takeovers. Many factors lead to an increase in hostile takeovers such as: Leverage, Political conditions, high profits and etc. Takeover has significant negative effects on the human factors, targeted corporations, their employees, their families and the state economies.
History of Hostile Takeovers
There was a Rapid increase in 1980 in hostile takeovers. Nowadays, the annual transaction activity amounts to $2,000 billion representing over 30,000 deals worldwide. There are six merfger waves up till now. These merger waves occurred in 1900, 1920...

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