Market Entry Strategies:
what is a hostile takeover in business?
Hostile takeover definition:
It is possible for a company to acquire another company without its approval. This is called hostile takeover and it happens when one company tries to gain majority stake in another company by getting hold of its shares rather than by arriving at an agreement with the management of the company. A proxy fight and a tender offer are one of the two ways through which hostile takeover is accomplished.
A little more about hostile takeover
What makes hostile takeover interesting is the fact that the target company’s management fights this kind of acquisition. Some of the popular ways in which the management tries to defend itself against this acquisition are pac-man defense, golden parachute, crown-jewel defense, and poson pill.