The hostile acquisition occurs when the target company resists the attempt to takeover the business. The predator as well as the target will both use different tactics to get an edge on each other.
A predator first tries to win over shareholders with a high price on their shares in order for them to acquire a majority stake. They may also use tactics such as proxy contests or tender offers that allow them to force an immediate sale of shares if they can’t acquire enough through traditional methods.
The target firm may also try to deter any hostile bids by buying existing shares back or issuing new ones, so as to make it too costly for predators. They may also raise their debt to reduce the attractiveness of their balance sheet or challenge any takeover attempt.
Order an Essay Now & Get These Homework Help Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
