Mergers and Acquisitions Basics

Chapter 4. Common Takeover Defenses

You learned in Chapter 3 about the tactics acquirers commonly use to gain a controlling interest in a target firm. This chapter focuses on the defense.

You learned in Chapter 3 about the tactics acquirers commonly use to gain a controlling interest in a target firm. This chapter focuses on the defense.

Takeover defenses are impediments to potential bidders and are designed either to slow down an unwanted offer or force a suitor to raise the bid to get the target's board to rescind the defense. Some observers argue that these defenses are meant to discourage unwanted takeovers so target management can hold on to high salaries and perks. Others contend that these defenses often benefit shareholders by forcing bidders ...