At the time, Genzyme had developed several drugs to treat rare genetic disorders. In the past few months, however, hostile takeovers have been making a comeback, starting with the battle for CoreLogic in June. In a hostile takeover, the acquirer goes directly go the company's shareholders . This money can be raised in a number of ways. Stock-for-Stock Merger: Definition, How It Works, and Example, All-Cash, All-Stock Offer: Defintion, Downsides, Alternatives, Swap Ratio: What it is, How it Works, Special Considerations, Acquisition Premium: Difference Between Real Value and Price Paid, Understanding and Calculating the Exchange Ratio, SEC Form S-4: Definition, Purpose, and Filing Requirements, Special Purpose Acquisition Company (SPAC) Explained: Examples and Risks, Bear Hug: Business Definition, With Pros & Cons, Vertical Merger: Definition, How It Works, Purpose, and Example, Understanding Horizontal Merger vs. Vertical Merger, Conglomerate Mergers: Definition, Purposes, and Examples, Roll-Up Merger: Overview, Benefits and Examples, 4 Cases When M&A Strategy Failed for the Acquirer (EBAY, BAC), Activist Investor: Definition, Role, Biggest Player, Employee Stock Ownership Plans in Corporate Transactions, The Clorox Company Adopts Stockholder Rights Plan. Definition, Types, and Example, Hostile Takeover Explained: What It Is, How It Works, Examples, Poison Pill: A Defense Strategy and Shareholder Rights Plan, What Is an Reverse Takeover (RTO)? A company might see an investment opportunity in a publicly traded company and want to gain control of it by acquisition or merger. The measures that a company uses to fend off a hostile takeover usually comes down to what they have available to them and what they put in place when the company was founded. The term hostile takeover refers to the acquisition of one company by another corporation against the wishes of the former. The difference between a hostile and a friendly takeover is that, in a hostile takeover, the target companys board of directors do not approve of the transaction. ", U.S. Securities and Exchange Commission. Activist hedge funds, which have been on the sidelines for most of the crisis, are seeking new ways to deploy capital. These defenses are designed to make a hostile takeover more costly in both time and money.
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