The attack and defence strategies are of critical importance for the situation of a takeover-bid from the view of the target company or the investor (raider).
They can be crucial factor whether the acquisition is successful or not. Several strategies are discussed and are evidenced on the basis of practical examples. Of special importance is the development of the bid premia during the takeover process and the impact to the shareholders wealth. It can be observed that through decades and several takeover waves in the 20th century specific defence strategies pointed out as favourites in use for target managers.
This project reviews the motivations for hostile takeovers, structures the random literature in this field, discusses the effects and impacts of popular attacks and defences and showcases several high-profile takeover bids.
Table of Contents
- 1 Introduction
- 1.1 Scope and Classification of the topic
- 1.2 Background
- 1.3 Objectives
- 1.4 Structure
- 2 Literature Review
- 2.1 Motives for hostile takeover attacks and anti-takeover defences
- 2.2 Attack and Defence Strategies
- 2.2.2 Attack Strategies
- 2.2.2.2 Tender Offer (Saturday Night Special)
- 2.2.2.3 Proxy Fight
- 2.2.2.4 Dawn Raid
- 2.2.3 Defence Strategies
- 2.2.3.2 Golden Parachutes
- 2.2.3.3 Silver Parachutes
- 2.2.3.4 Poison Pills
- 2.2.3.5 Staggered Board
- 2.2.3.6 People Pill
- 2.2.3.7 Capital Structure Changes
- 2.2.3.8 Crown Jewels
- 2.2.3.9 Greenmail
- 2.2.3.10 Supermajority
- 2.2.3.11 Macaroni Defence
- 2.2.3.12 White Knight
- 2.2.3.13 Pac-Man-Defence
- 2.2.2 Attack Strategies
- 3 Conclusion
- 3.1 Limitations and Scope for further Research
- 3.2 Conclusion
Objectives and Key Themes
This project aims to review the literature on hostile takeover attack and defense strategies, analyzing their effectiveness and impact on shareholder wealth. It explores the motivations behind hostile takeovers and examines various strategies employed by both acquiring firms and target companies. The project also provides practical examples of high-profile takeover bids to illustrate the discussed concepts.
- Motivations for hostile takeovers
- Attack strategies (tender offers, proxy fights, dawn raids)
- Defensive strategies (poison pills, golden parachutes, white knights)
- Impact of takeover strategies on shareholder wealth
- Analysis of successful and unsuccessful takeover bids
Chapter Summaries
1 Introduction: This introductory chapter sets the stage for the dissertation by defining the scope and classification of hostile takeovers. It provides background information on the topic, outlining the objectives of the study and its overall structure. The chapter establishes the context for the subsequent literature review and analysis of attack and defense strategies, highlighting the importance of understanding these dynamics within the broader context of mergers and acquisitions.
2 Literature Review: This chapter delves into the existing literature on hostile takeovers, exploring the motives behind such acquisitions and providing a comprehensive overview of both attack and defense strategies. The section on attack strategies examines various methods employed by acquiring firms, such as tender offers, proxy fights, and dawn raids, detailing their mechanics and effectiveness. The defense strategies section analyzes a wide array of tactics used by target companies to thwart takeover attempts, including poison pills, golden parachutes, and white knight defenses. The chapter aims to synthesize the existing scholarly work in this field, providing a framework for the subsequent analysis.
Keywords
Hostile takeovers, mergers and acquisitions (M&A), attack strategies, defense strategies, tender offer, proxy fight, dawn raid, poison pill, golden parachute, white knight, shareholder wealth, bid premium, takeover waves.
Frequently Asked Questions: Comprehensive Language Preview on Hostile Takeovers
What is the purpose of this document?
This document provides a comprehensive preview of a larger work focusing on hostile takeover attack and defense strategies. It includes a table of contents, objectives, key themes, chapter summaries, and keywords.
What topics are covered in the document?
The document covers the motivations behind hostile takeovers, various attack strategies (tender offers, proxy fights, dawn raids), different defense strategies (poison pills, golden parachutes, white knights), the impact of these strategies on shareholder wealth, and an analysis of successful and unsuccessful takeover bids.
What is the structure of the main work?
The main work is structured into three chapters: An introduction defining the scope and objectives; a literature review exploring attack and defense strategies; and a conclusion discussing limitations and areas for further research.
What are some of the key attack strategies discussed?
Key attack strategies discussed include tender offers (including the "Saturday Night Special" tactic), proxy fights, and dawn raids.
What are some of the key defense strategies discussed?
Key defense strategies discussed include golden parachutes, silver parachutes, poison pills, staggered boards, people pills, capital structure changes, crown jewels, greenmail, supermajority requirements, macaroni defense, white knight defense, and Pac-Man defense.
What is the focus of the literature review chapter?
The literature review chapter delves into the existing research on hostile takeovers, examining the motivations behind them and providing a detailed overview of both attack and defense strategies. It aims to synthesize existing scholarly work.
What are the key limitations and scope for further research?
This information is found in the conclusion chapter, but is not detailed in this preview.
What are the keywords associated with this document?
Keywords include: Hostile takeovers, mergers and acquisitions (M&A), attack strategies, defense strategies, tender offer, proxy fight, dawn raid, poison pill, golden parachute, white knight, shareholder wealth, bid premium, and takeover waves.
What is the overall aim of the research?
The project aims to review the literature on hostile takeover attack and defense strategies, analyzing their effectiveness and impact on shareholder wealth.
Are there any practical examples included?
The preview mentions that the full document will include practical examples of high-profile takeover bids to illustrate the concepts discussed.
- Quote paper
- MSc Panagiotis Papadopoulos (Author), 2011, Hostile Takeovers - The use of Attack and Defence Strategies, Munich, GRIN Verlag, https://www.grin.com/document/182632
