Hostile Takeover

A hostile takeover is a type of acquisition in which one company attempts to acquire another against the wishes of the target company’s management and Board of Directors. This often involves purchasing a significant number of Shares directly from the Shareholder/">Shareholders or through a Tender Offer. Hostile takeovers are usually characterized by a lack of cooperation from the target company, which may resist the takeover through various defensive measures.

Examples of hostile takeovers include:

• Vodafone and Mannesmann (2000): Vodafone launched a hostile bid for Mannesmann, a German telecommunications company, which resulted in Vodafone acquiring Mannesmann for $180 billion, marking one of the largest mergers in history.
• Oracle and Peoplesoft (2003): Oracle made a series of hostile bids for Peoplesoft, ultimately succeeding after months of resistance from Peoplesoft’s management.
• Airgas and Air Products (2010): Air Products attempted a hostile takeover of Airgas, which was met with significant resistance. The bid was eventually abandoned after the courts upheld Airgas’s defensive measures.