Hostile Takeover

Posted in Finance, Accounting and Economics Terms, Total Reads: 643

Definition: Hostile Takeover

Hostile Takeover is an acquisition strategy in which the acquirer company takes over the to-be-acquired company not by having a proper agreement with the board but rather by approaching the shareholders for approval.

Hostile Takeover can be a safe or a tricky bet on case to case basis. Sometime in hostile takeover, there may be some information which may not be available directly to acquirer because of target company's non-cooperation which may prove an issue late on. 

There are two types of hostile takeover

1) Tender Offer-Offering a public price

2) Proxy Fight-Getting majority shareholders

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