Hostile takeovers can be high-stakes affair that leaves a lasting impression the corporate landscape. They involve an acquiring company trying to acquire the target company against the wishes of the management and board. Despite their publicity and drama, hostile takeovers are not so common as they were.
During the 1980s there were 160 hostile takeover bids. Board members were in constant fear of «corporate raiders», such as Carl Icahn. The events were widely discussed and often led to long negotiations, which were mud-slinging.
A notable example is the acquisition of Cadbury by Kraft Foods Inc in 2009. It Data Room Ciências da Vida: Streamlining Innovation and Compliance in Life Sciences was the most hostile acquisition in history and employees in the UK were outraged at the possibility of losing their jobs. Cadbury’s management rejected the offer and claimed that it was not worth the value of the company. Kraft sweetened its offer and eventually acquired the confectionary giant.
Another notable instance is the purchase by KKR of Airgas in the year 2010. It was a hostile takeover of an industrial gas company and represented one of the largest leveraged buyouts of the time. The dispute became a media frenzy, and the deal ultimately ended up in a lengthy legal dispute.
Elon Musk’s acquisition of Twitter in 2022 is one of the more recent examples. This hostile takeover involved the use a poison pill defence and led to tumultuous negotiation and sweeping policy changes following the acquisition. This was an example of how a strategic acquisition was able overcome the hostile takeover battle. It shows how important it is to have a well-planned strategy to fight off unwanted offers.