Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

hostile takeover

Read a random definition: unilateral advance pricing agreement

A quick definition of hostile takeover:

A hostile takeover is when one company takes control of another company without the approval of the target company's board of directors. This means that the target company's management does not want to be taken over. There are two ways this can happen: a tender offer or a proxy vote. A tender offer is when the acquirer offers to buy shares from the target company's shareholders at a higher price than the market price. The goal is to get enough shares to have control of the target company. A proxy vote is when the acquirer tries to convince the target company's shareholders to vote out the current management. The target company can try to stop the takeover by using defenses like a poison pill, golden parachute, or greenmail. Some famous examples of hostile takeovers include RJR Nabisco, Warner Communications, and Kraft.

A more thorough explanation:

A hostile takeover is a type of acquisition where one company takes control of another company without the approval or consent of the target company's board of directors. This means that the target company's management is not in favor of the takeover, hence the term "hostile".

There are two common ways for a hostile takeover to occur:

  • Tender Offer: The acquirer offers to purchase stock shares from the target company's shareholders at a premium to the market price. The goal is to acquire enough voting shares to have a controlling equity interest in the target company, usually over 50% of the voting stock.
  • Proxy Vote: The acquirer tries to persuade existing shareholders of the target company to vote out the current management so that it will be easier to take over.

The target company can employ several defenses against a hostile takeover, such as:

  • Poison Pill: Diluting the equity interest by allowing current shareholders to purchase new shares at a discount.
  • Golden Parachute: Providing expensive benefits to key management if they are removed following a takeover.
  • Greenmail: Repurchasing shares at a higher premium.

Some examples of hostile takeovers include:

  • The hostile takeover of RJR Nabisco in 1988
  • The takeover of Warner Communications by Time Inc in 1989
  • The takeover of Kraft by Heinz in 2015

These examples illustrate how a company can take control of another company without the approval of the target company's management. In each case, the acquirer used a tender offer or proxy vote to gain control of the target company. The target company then employed various defenses to try and prevent the takeover, but ultimately failed.

hostile possession | hostile witness

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
16:22
which do i pick
16:23
whichever one calls to you more
16:23
I’m crying this so clearly made by a little kid
16:23
They spelled pilot piolet
You are Strawberry shortcake. You are cute and lovely.
facts
[9F]emails from crashing
16:25
You’re literally cute and lovely
hell yeah i'm blueberry muffin
16:25
Im Raspberry Torte
"She's often a girl with a sharp tongue and a lack of tact."
16:27
damn that is me
16:27
Voice actor Pamela Anderson that’s so crazy is that real
MrThickRopes
16:28
Can I get a FOOOO YEAAAAAH
"Strawberry is a sweet, kind, and helpful girl with an extraordinary talent for baking and a knack for tending to berry plants. She's always ready to make new friends, go on adventures, and bake the world a better place."
they clocked me here
16:28
dang i read the wiki and shes like a classic yuri tsundere for strawberry
"Blueberry is normally the mature and smartest girl in the group. She is knowledgeable about almost everything. She spends so much time with books that she always knows exactly what others need, or where the specific topic they need will be located in her bookstore, Blueberry Books. She is a whole lot of knowledge and very well-mannered, which can confuse her friends since they struggle to understand her in some way. With her acute wit and flair for more than just average knowledge, Blueberry is a genius when it comes to organization, making plans, maps, and schedules, as long as it is not overly sophisticated." blueberry is autistic, confirmed
NosyBeagle
17:00
it is 4pm, time for nyt sudoku
do you do the morning wordle
Why is Southern Methodist not on my lsd page ever when I search my stats?
Its the only school I dont see on here
I only see Duke, UCLA, and UC Berkley
@RasheedWallaceFan: racism
NosyBeagle
18:07
@TiredOfThisGrandpa: YES! I <3 wordle
18:12
im a cine2nerdle guy
i need some homies who are applying this fall to proofread each others essays
Im not paying a service to read my essay thats stupid so need some friends
@RasheedWallaceFan: I'm a lit para of a decade, I'd be happy to proof.
LSD+ is ad-free, with DMs, discounts, case briefs & more.