Corporate Actions

Hostile Takeover

Definition

What is Hostile Takeover?

A takeover pursued without the support of the target company's board.

Example in practice

The bidder appeals directly to shareholders after the board rejects its offer.

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An offer allowing existing shareholders to buy additional shares, usually in proportion to their holdings.

An issue of additional shares to existing shareholders without a cash payment.

An increase in the number of shares accompanied by a proportional reduction in price per share, leaving total value initially unchanged.

A vote cast by another person or electronically on behalf of a shareholder.

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