Hostile Takeovers and its Defense Tactics

19 Pages Posted: 21 Nov 2011

See all articles by AYUSH YADAV

AYUSH YADAV

Institute of Law, Nirma University, Ahmedabad, INDIA

Date Written: November 21, 2011

Abstract

Mergers and acquisitions in its basic terminology means that merger is a combination of two companies to form a new company, while an acquisition (or takeover) is the purchase of one company by another in which no new company is formed. Although the terms Mergers and Acquisitions may be used synonymously, but they differ in sense that a merger take place when two firms agree to go forward as a single new company and in acquisition the right over other company is acquired. Acquisition (or takeover) is an attempt to acquire the Target Company. Takeovers may be friendly or hostile. Hostile Takeover means the acquisition of one company (called the target company) by another (called the acquirer) that is accomplished not by coming to an agreement with the target company's management, but by going directly to the company’s shareholders or fighting to replace management in order to get the acquisition approved.

Keywords: mergers, acquisition, takeovers, friendly takeovers, hostile takeovers, company, defense tactics

Suggested Citation

Yadav, Ayush, Hostile Takeovers and its Defense Tactics (November 21, 2011). Available at SSRN: https://ssrn.com/abstract=1962538 or http://dx.doi.org/10.2139/ssrn.1962538

Ayush Yadav (Contact Author)

Institute of Law, Nirma University, Ahmedabad, INDIA ( email )

Opp. Gujarat High Court, SOLA
Ahmedabad, IN Gujarat
India

HOME PAGE: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1962538

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