Question

From a bidder’s perspective compare and contrast the differences in approach to executing friendly and hostile bids?

Answer 1

In today's scenario every business or the organisation in the market have the competitors and even the company grow in the market with the competitors. And many big organisations are the companies come together combining through the acquisition or merger.

If all the participants and the shareholders and the whole management is agreed with the the lead managers are the leaders then it comes up in the friendly takeover with that place.and in case if the acquired companies management is not agree then the AC waring company mein initiate hostile take over by appealing directly to the shareholders.

A hostile takeover occurs when one of the corporation the acquiring corporation attempt to take the another corporation without any agreement of the target corporations board of directors. And if the shares are purchasedmore than the acquiring company may then approve a merger or simply appointed on directors and officers who run the target company and subsidiary.

And when it is about a friendly take over occurs when one corporation acquired the another corporation with both board of directors approving the transactions. And mostly most of the organisations are take over friendly but hostile takeovers and activist compaign have become more popular lately with the risk of activist hedge funds.

It is the very easy method or the approach through which companies can merge together to get the more turnover over there profit.