Question

(At least 300 Words) The Corporate Takeover Market: Common Takeover Tactics, Antitakeover Defenses, and Corporate Governance. Friendly takeover is clear, how about a hostile takeover. Can you provide one example and briefly discuss. Discuss one pro and one con of a friendly takeover AND a hostile takeover. You can also add one of the techniques used to assist or deter these type of takeovers.

Answer 1

Friendly takeover those takeover which have been executed with the willingness of the management of both the companies and the share holders of both the companies.

Hostile takeover is a kind of takeover which has been acquired by buying out the stake into the share market and also from other investors in order to desperately buy company against the will of the management of the company.

One advantageof hostile takeover is to buyout such companies without proper negotiations and buying out at desired price from various investor in stock market.

one disadvantage of hostile takeover is that the management of the company does not participate in the new acquired company and they do not have the required experience and exposures.

one advantage of friendly takeover is that management participations are there and Management jobs are also secured.

one disadvantage of the friendly takeover is that the prices are not suitable for the acquirer company.

these type of hostile takeover can also be avoided by various Management by continuous buybacks of the shares so that the buybacks of the shares will help them in retention of the highest possible stake in the company and that will be avoiding any kinds of the takeover attempt of another company.

so these are the types of the takeover which are existent in the market and these are the type of the takeover various company apply in order to gain the control of the another country and it will help in the long run for the maximization of the wealth if the companies acquired at fair value and the company has a bright prospect ahead.