A lingering recession would seem like the opportune time to attempt a takeover. For some companies, acquisitions represent a way to stay alive and others a chance to grow. In the long run, timing was just not enough. Either the deal wasn't sweet enough or antitrust issues soured the plan. The following are four notable failed takeover attempts:

  1. Koenigsegg GroupAB Backing Away from Saab
    The Swedish car maker is retracting its agreement to buy 100% of Saab stock from GM. This comes as a blow to GM. The sale was part of the company's bankruptcy restructuring plan. Now GM may be forced to shut down the lackluster brand. Saab is expected to sell less than 100,000 cars in 2009 and post a deficit - again. Who's impacted? Manufacturing workers with few new job opportunities; Saab car dealers who thought they were out of the woods when a prospective new owner surfaced; stockholders reeling from even more bad news - the new GM can't seem to catch a break.

  2. It Ain't Over 'Til It's Over for Kraft and Cadbury
    British candy giant Cadbury told Kraft its $16 billion offer was just not enough. Kraft then attempted a hostile takeover offering a cash & stock deal to Cadbury stockholders. The latest turn in Kraft's attempt to buy Cadbury encouraged Hershey to jump into the mix. Hershey announced its interest in buying Cadbury on the company website November 18, 2009. Bryon Trott of BDT Capital is handling the Hershey Trust's possible offer. Cadbury shareholders are hopeful Hershey will force Kraft to re-evaluate how much it thinks Cadbury is worth. The whole situation is a mouth-watering confectionery drama.

  3. China Blocked Coke's Taste for Huiyan
    Everybody wants a piece of the Chinese consumer market. Coca-Cola tried to enhance its presence only to be thwarted by China's Commerce Ministry. Coke's attempt to buy juice maker Huiyan caused antitrust concerns. Not to be discouraged, a few months later Coke posted a press release celebrated the opening of three new bottling plants for existing beverages in China.

  4. Facebook Couldn't Befriend Twitter
    Even in the social networking world, cash speaks louder than "stated stock value." Facebook is privately held. Twitter's investors valued it at $98 million. When the proposal surfaced to purchase Twitter for $400 million of Facebook stock plus $100 million in cash, the two sides could not agree on just how much Facebook stock was worth. Valuing tech companies has never been an easy task and, in the environment of tight credit, stock was the only tool available to marry the social networking king with the queen of micro-blogging. The current wedding is off, but the two are said to be still dating.

Though a failed takeover doesn't necessarily pull a deal off of the table, it can complicate negotiations down the road. And as we've seen with the recent purchase of NBC by Comcast (in a deal worth $30 billion), anything is possible in the world of mergers and acquisitions.

Related Articles
  1. Professionals

    10 Must Watch Documentaries For Finance Professionals

    Find out about some of the best documentaries that finance professionals can watch to gain a better understanding of their industry.
  2. Stock Analysis

    How UPS Plans to Benefit from Its Coyote Acquisition

    Understand the business models of UPS and Coyote Logistics. Learn about the top four ways in which UPS will benefit from the acquisition of Coyote Logistics.
  3. Stock Analysis

    Social Media Networks That Are Cashing in on the 2016 Presidential Election

    Learn how social media continues to shape the way political campaigns are run. Through social networks, candidates can reach voters directly like never before.
  4. Investing News

    Thursday Intel: Will Q4 Offer a Fresh Start?

    Investor hopes for a fresh start to the world economy in this quarter may be misplaced.
  5. Entrepreneurship

    5 Ways to Make Money on Twitter

    Find out how people are making money online on Twitter, and get some ideas that can turn Twitter into a source of revenue for you or for your small business.
  6. Stock Analysis

    This Is What Carl Icahn's Portfolio Looks Like

    Read about some of the holdings in Carl Icahn's portfolio. Learn about his activist campaigns against companies that he believes are performing poorly.
  7. Markets

    Is Another Bear Market Ahead?

    With market volatility recently reaching its highest level, investors are questioning what the outlook is for U.S. stocks in 2015 and beyond.
  8. Investing News

    Office Depot and Staples Merger: What You Need to Know

    A major office-supply company merger is now in the works between Office Depot and Staples. First attempted 18 years ago, will this time be the charm?
  9. Stock Analysis

    Why Is GE Selling Some of Its Subsidiaries?

    Learn why GE is selling off a substantial amount so it does not have to comply with increased government regulation in the wake of the 2008 financial crisis.
  10. Forex Fundamentals

    How Foreign Exchange Affects Mergers and Acquisitions Deals

    Learn how foreign exchange rates can impact the flows of international merger and acquisition (M&A) transactions, and understand how deals can impact exchange rates.
  1. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
  2. How long does it take to execute an M&A deal?

    Even the simplest merger and acquisition (M&A) deals are challenging. It takes a lot for two previously independent enterprises ... Read Full Answer >>
  3. How does the risk of investing in the industrial sector compare to the broader market?

    There is increased risk when investing in the industrial sector compared to the broader market due to high debt loads and ... Read Full Answer >>
  4. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>
  5. What are some common accretive transactions?

    The term "accretive" is most often used in reference to mergers and acquisitions (M&A). It refers to a transaction that ... Read Full Answer >>
  6. Are companies with high Book Value Of Equity Per Share (BVPS) takeover targets?

    Companies with high book value of equity per share (BVPS) can be good takeover targets if those companies are public and ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  2. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  3. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  4. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  5. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!