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. Economics

    Is a Recession Coming?

    In the space of a week, the VIX Index, a measure of market volatility, spiked from 13, suggesting extreme complacency, to over 50, evidencing total panic.
  2. Stock Analysis

    Net Neutrality: Pros and Cons

    The fight over net neutrality has become an amazing spectacle. But at its core, it's yet another skirmish in cable television's war to remain relevant.
  3. Active Trading Fundamentals

    The Biggest Private Equity Firms in Los Angeles

    Learn why Los Angeles is a thriving market for private equity, and identify the five largest private equity firms operating in the city.
  4. Investing

    What’s Holding Back the U.S. Consumer

    Even as job growth has surged and gasoline prices have plunged, U.S. consumers are proving slow to respond and repair their overextended balance sheets.
  5. Economics

    A Look at Greece’s Messy Fiscal Policy

    Investigate the muddy fiscal policy, tax problems, and inability to institute austerity that created the Greek crises in 2010 and 2015.
  6. Stock Analysis

    5 Reasons Thoratec Corp. Keeps Impressing Investors

    Learn about Thoratec Corporation and its position in its industry. Understand five key factors why the company has impressed investors.
  7. Entrepreneurship

    Top 5 Startups That Emerged in Boston

    Learn why Boston is a hot market for startups, and familiarize yourself with a few of the top startups that have emerged from the city.
  8. Economics

    How Do Asset Bubbles Cause Recessions?

    Understand how asset bubbles often lead to deep, protracted recessions. Read about historical examples of recessions preceded by asset bubbles.
  9. Professionals

    Holding Out for Capital Gains Could Be a Mistake

    Holding stocks for the sole purpose of avoiding short-term capital gains taxes may be a mistake, especially if all the signs say get out.
  10. Investing News

    What Shook the U.S. Stock Market Today?

    What was looking as a decent year for US Stock market has suddenly gone off track as the Dow Jones Industrial Average plunged 531 points in the week ending August 23, 2015.
RELATED TERMS
  1. Weighted Average Cost Of Capital ...

    A calculation of a firm's cost of capital in which each category ...
  2. Venture Capitalist

    An investor who either provides capital to startup ventures or ...
  3. Runoff Insurance

    An insurance policy provision that provides liability coverage ...
  4. Regional Asset Liquidation Agreement ...

    An agreement between an asset manager and the Federal Deposit ...
  5. The New Deal

    A series of domestic programs designed to help the United States ...
  6. Hunting Elephants

    The practice of targeting large companies or customers.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. How can I hedge my portfolio to protect from a decline in the retail sector?

    The retail sector provides growth investors with a great opportunity for better-than-average gains during periods of market ... Read Full Answer >>

You May Also Like

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!