HOSTILE TAKEOVER Meaning and
Definition
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A hostile takeover refers to the acquisition of a company by another entity against the wishes or without the approval of the target company's management, board of directors, or majority shareholders. It typically involves a change in control and ownership structure that is perceived as unwelcome and detrimental by the target company.
In a hostile takeover, the acquiring entity endeavors to gain control of the target company by directly approaching its shareholders or through an open market purchase of shares, bypassing any negotiations or agreement with the target company's management. This aggressive approach is often pursued when the acquiring entity believes that the target company could bring strategic advantages, valuable assets, or potential profitability.
Hostile takeovers usually involve a series of tactics and strategies that aim to undermine the target company's resistance. These tactics might include making a hostile bid, launching a proxy fight to oust the target company's board of directors, engaging in a hostile tender offer, and even utilizing litigation to pressure the target company into accepting the takeover offer.
The motives behind a hostile takeover can vary, from gaining control of valuable assets to exploiting synergies, increasing market share, or simply eliminating a competitor. However, hostile takeovers are widely viewed as contentious and contentious events due to the disregard for the target company's management and shareholders' interests in the decision-making process.
In many jurisdictions, laws and regulations have been established to protect target companies from hostile takeovers, providing measures and defenses that can be implemented to resist or deter potential acquirers.
Common Misspellings for HOSTILE TAKEOVER
- gostile takeover
- bostile takeover
- nostile takeover
- jostile takeover
- uostile takeover
- yostile takeover
- histile takeover
- hkstile takeover
- hlstile takeover
- hpstile takeover
- h0stile takeover
- h9stile takeover
- hoatile takeover
- hoztile takeover
- hoxtile takeover
- hodtile takeover
- hoetile takeover
- howtile takeover
- hosrile takeover
Etymology of HOSTILE TAKEOVER
The term "hostile takeover" originated in the field of finance and refers to the acquisition of one company by another against the wishes of the target company's management and board of directors.
The word "hostile" derives from the Latin word "hostilis", which means "enemies". It entered the English language in the late 16th century, referring to an adversary or someone showing enmity towards another. In the context of takeovers, "hostile" indicates the aggressive nature of the acquisition attempt.
The term "takeover" originates from the verb "take over", which means to assume control or ownership of something. The word "take" in this context implies seizing or capturing. "Takeover" gained prominence in the early 20th century in the business world, particularly in relation to corporate acquisitions.
