What Is a Hostile Takeover?

A hostile takeover is an acquisition of one company by another in which the target company's management opposes the acquisition. A hostile takeover can be accomplished in several ways, but the most common is for the acquiring company to simply purchase enough shares of the target company on the open market to gain control of the company.

Hostile takeovers are often controversial, as they can be seen as a way for a company to take over another without the target company's consent. This can lead to job losses and other changes that can be detrimental to the target company's employees and shareholders. What are the two types of hostile takeovers? There are two types of hostile takeovers:

1. Frontal Attack

2. Flanking Attack

What is the difference between a hostile and a friendly merger? A hostile merger is a business combination that occurs when an acquiring company makes a tender offer to buy another company, but the management and board of the target company resists the offer. A friendly merger is a business combination that occurs when the management and board of the target company approves the offer from the acquiring company.

How often do hostile takeovers work?

In the United States, hostile takeovers are relatively rare, accounting for only a small minority of M&A activity. The most recent data from Thomson Reuters shows that, in 2017, there were only about 50 hostile takeover attempts among all the deals tracked. This represents less than 5% of the total M&A activity for that year.

That said, hostile takeovers can and do happen, and they can be successful. In a hostile takeover, the target company is typically unwilling to be acquired, and the acquirer has to take more aggressive steps to get the deal done. This can include making a public offer to shareholders, going directly to the board of directors, or even launching a proxy fight.

There are a number of reasons why a hostile takeover might be successful. For example, the acquirer might be able to offer a higher price than what the target company's management was willing to accept. Or, the acquirer might be able to convince shareholders that a change in management is needed in order to improve the company's performance.

Hostile takeovers are often complex and difficult deals to pull off, but they can be successful. Is a hostile takeover ethical? There is no definitive answer to whether hostile takeovers are ethical or not. Some people argue that they are a necessary part of the free market, while others contend that they are a form of corporate raiding that harms employees, shareholders, and the overall economy. What is the most expensive company acquisition? The most expensive company acquisition was the purchase of Mannesmann AG by Vodafone AirTouch PLC in 1999. The deal was valued at $183 billion.