Defenses Against Takeover Bids – Anti Takeover Strategies
A firm having all or any of the following features may provide a temptation to an acquiring firm to take-over the former: The target firm has under performed other shares and the overall market in terms of return the shareholders in the preceding years. The target firm has been less profitable than other firms, and The promoter/owner group has lower shareholding in the target firm and the public has a higher portion. If an acquiring firm makes an offer for negotiated merger to the management of the target firm, it is up to the latter to accept or not to accept the offer. The target firm may not find the offer to be attractive and hence it may reject the offer. However, the acquiring firm may still persists with the idea either by making a tender offer or attempting a hostile take-over bid. In such a case, it is the Continue reading