Hostile takeover

Hostile takeover bid
A hostile takeover bid is one that is made despite the opposition to it expressed by the directors of the target (the company that would be taken over).

hostile takeover

A takeover that is not supported by the management of the company being acquired - as opposed to a friendly takeover.

hostile takeover
Mergers & Acquisitions
unwelcome acquisition of firm the acquisition by a company of a controlling interest in the voting share capital of another company whose directors or stockholders are opposed to the action.

Hostile Takeover (or Bid)
A takeover bid by one company for another, in which the directors of the target company oppose the bid. Their opposition may be temporary Ð...(Read more)
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Hostile Takeover.
A hostile takeover occurs when the managing board of the target firm rejects the takeover bid, but, the acquiring firm pursues the takeover anyway.

Hostile takeover
A takeover of a company against the wishes of the current management and the board of directors by an acquiring company or raider.
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hostile takeover a situation in which investors buy a large share of a company and replace the management. (13) ...

hostile takeover: An unsolicited acquisition of one company by another, or an attempt to do so.
hypothecation: The pledging of margin securities by a brokerage to secure the funds necessary to carry an account's debit balance.

Hostile Takeover A merger or acquisition in which management resists the group initiating the transaction. Also called raids or takeover raids.
House of Issue The investment bank that underwrites and floats a security issue.
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Hostile takeover - This refers to when a company attempts to purchase out another company without the support of the second company's board of directors.

Hostile takeovers
A hostile takeover allows a suitor to a target company's management unwilling to agree to a merger or takeover.

HOSTILE TAKEOVER: In the world of mergers, the acquisition of one company by another against the wishes of the company being acquired.

Hostile takeover
A tender offer which is made to the shareholders without the approval of the board of directors.
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A hostile takeover prevention tactic that could destroy the target company. Taking on a large amount of debt to prevent the takeover might cause bankruptcy, for example.
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One response was hostile takeovers. Financed with junk bonds, raiders would seize control of a firm, fire management, slash expenses, and then sell off a reorganized firm at a profit. That was the theory.

Pension parachute A form of poison pill providing that in the event of a hostile takeover attempt, any excess pension plan assets can be used to benefit pension plan participants.

Macaroni defense A tactic used by a corporation that is the target of a hostile takeover bid involving the issue of a large number of bonds that must be redeemed at a higher value if the company is taken over.

poison pill Any tactic by a firm designed to avoid a hostile takeover. One example is the... policy A contract of insurance, describing the term, coverage, premiums and deductibles. Also known as insurance policy.

A hostile takeover (aiming to replace existing management) is usually attempted through a public tender offer. General term referring to transfer of control of a firm from one group of shareholders to another group of shareholders.

Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's share so as to as to squeeze (hug) the target into acceptance.

Antithesis of hostile takeover. Front-end load The fee applied to an investment at the time of initial purchase, e.g., on a mutual fund purchased from a broker or mutual fund company.

Includes mergers and acquisitions, hostile takeovers, goings-public, goings-private, leveraged buyouts, management buyouts, and restructuring troubled companies.

safety margin : the difference between price and value for a common stock.
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Jonestown defense refers to an extreme defensive tactic used by a company desperately avoiding a hostile takeover.

A company may buy back its stock for a number of reasons, ranging from preventing a hostile takeover to having shares available if employees exercise their stock options.

Due to occasional events such as natural disasters, terrorism threats and hostile takeovers, today the world market is highly uncertain, which ultimately affects commercial foreign exchange rates of currencies.

Hostile takeovers have been one of the hottest business topics in recent years.

The market for corporate control need not always involve hostile takeovers, although their possibility is critical to a properly functioning market.

A form of poison pill providing that in the event of a hostile takeover attempt, any excess pension plan assets can be used to benefit pension plan participants. This prevents the raiding firm from using the pension assets to finance the takeover.

These can be a voluntary marriage of equals; a voluntary takeover of one firm by another; or a hostile takeover, ...

A defensive tactic used by a targeted firm in a hostile takeover situation. In a Pac-Man defense, the target firm turns around and tries to acquire the other company that has made the hostile takeover attempt.

A corporate provision to combat hostile takeovers. When triggered, the poison pill allows shareholders to acquire additional shares at below market price, ...

Often used in risk arbitrage. Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's share so as to as to squeeze (hug) the target into acceptance.
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A corporation that is the target of a hostile takeover sometimes seeks out a white knight that comes to the rescue by making an offer to acquire the target company in a friendly takeover that suits the needs and goals of the target's management and ...

An anti-takeover arrangement often established by a company in anticipation of a hostile takeover attempt. The company appoints a Rights Agent who will issue Rights certificates to each shareholder at the time of the takeover attempt.

Hostile takeovers aim to replace the target company's existing management and are usually attempted through a public tender offer.

Suicide pill
Definition: [crh] A hostile takeover prevention tactic that could destroy the target company. Taking on a large amount of Definition: "debt to prevent the takeover might cause bankruptcy, for example.

A colloquial term for steps taken by a company to make itself unattractive to a buyer in a hostile takeover.

BEAR HUG - Often used in risk arbitrage. Hostile takeover attempt in which the acquirer offers an excep...
BEAR MARKET - A bear market is sometimes described as a period of falling securities prices and sometim...

See also: Acquisition, Consolidated Financial Statements, Hostile Takeover, Merger, Parent Company, Takeover, Wholly Owned Subsidiary
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10-K
Callable Common Stock
Carve out
Consolidate
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Lobster Trap - A strategy used by a target firm to prevent a hostile takeover. In a lobster trap, the company passes a provision preventing anyone with more than 10% ownership from converting convertible securities into voting stock.

Recapitalization. This is a financing technique used by companies to defend against hostile takeovers. By recapitalization, a company restructures it's debt and equity mixture without affecting the total amount of balance sheet equity.

12- Jonestown Defense
A defensive tactic to stop a hostile takeover where the target company actually does something that might ruin itself rather than be taken over.

When one company attempts to acquire a company that does not want to be acquired, it is said to have launched a hostile takeover.

Companies that do not want to become hostile takeover targets might undergo a recapitalization by taking on a very large amount of debt, and issuing substantial dividends to their shareholders (this makes the stock riskier, ...

Jonestown defense
An extreme defensive tactic employed by the management of a target corporation to prevent a hostile takeover. The defensive tactics are so extreme that they typically lead to the destruction of the target corporation. See: Suicide.

Poison pill - A corporate provision to combat hostile takeovers.
Portfolio - The collection of investments you own.
Posting - Entering figures in an account.

White Knight. When a company is the target of a hostile takeover it may seek out another company who is more friendly to rescue it. The friendly company is known as a white knight.

Companies may also buy back shares to pay for acquisitions that are financed with stock swaps, to make stocks available for employee stock option plans, to decrease the risk of a hostile takeover by reducing the number of shares available for sale, ...

The phrase White Knight is applied to a company making a counterbid for another company which is already the target of a hostile takeover bid .

A leveraged buyout is a tactic through which control of a corporation is acquired by buying up a majority of their stock using borrowed money. A leveraged buyout may also be referred to as a hostile takeover, a highly-leveraged transaction, ...

joins two similar businesses to enter a new market; and a hostile takeover occurs when a stronger business absorbs another against its will. The methods of effecting mergers vary.

Often used in risk arbitrage. Privilege offered a White Knight (friendly acquirer) by a target company of buying crown jewels or additional equity. The aim is to discourage a hostile takeover. See: shark repellant
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Debt (in the form of bonds) has some advantages over equity as a way of raising money, since it can have tax benefits and can enforce a cash discipline. The reduction in equity also makes the firm less vulnerable to a hostile takeover.

See also: Banks, Expense, Values, Stock symbol, Tender Offer