The person or persons who wish to acquire the shares address themselves directly to the shareholders. If the board of directors of the target company does not approve the agreement, the takeover bid effectively constitutes a “hostile takeover”Hostile TakeoverA hostile acquisition of mergers and acquisitions (M&A) is the acquisition of a target company by another company (called an acquirer) by directly in the shareholders of the target company, either through a takeover offer, or by proxy voting. The difference between a hostile attempt and a friendly attempt. In order to incentivize the shareholders of the target company to sell, the offer price of the acquirer is usually evaluated by a premium on the current market price of the target company`s shares. For example, if a target company`s shares are trading at US$10 per share, a acquirer could offer shareholders US$11.50 per share, provided that 51% of shareholders agree. . . .
Oct
11
Comments are closed.