Hostile takeovers are high-risk event that leaves a lasting mark https://jobdataroom.com/essential-features-of-virtual-data-rooms-for-business-growth/ on the corporate landscape. They involve an acquirer trying to acquire the target company against the wishes of the board and management. Despite their high-profile and public nature hostile takeovers aren’t so common as they were.
In the 1980s, there were over 160 hostile takeover offers. Board members were frightened by «corporate raiders», such as Carl Icahn. These events were widely publicized, often leading to lengthy and mud-slinging discussions.
A notable example is the acquisition of Cadbury in 2009 by Kraft Foods Inc. It was the largest hostile acquisition in the history of the company and employees in the UK were furious at the possibility of losing their jobs. Cadbury’s management was against the offer, claiming it was an unqualified bid. In the end, however, Kraft sweetened the offer and bought the confectionery giant.
Another noteworthy case is the takeover by KKR of Airgas in 2010. It was a hostile takeover of an industrial gas provider and was one of the largest leveraged buyouts of the time. The dispute became the subject of a media storm, and the deal ultimately became a lengthy legal battle.
Elon Musk’s acquisition of Twitter in 2022 is an example from the past. This hostile takeover entailed the use of a poison pill defence, which led to a tumultuous negotiation as well as a massive policy shifts following the acquisition. This was a case of an acquisition strategy that was successfully able to withstand the fight against hostile takeovers, showing how important it is for the target firm to have a well-developed strategy to resist unwanted offers.