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Hostile Takeover

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Dictionary Says

Definition of 'Hostile Takeover'

The acquisition of one company (called the target company) by another (called the acquirer) that is accomplished not by coming to an agreement with the target company's management, but by going directly to the company’s shareholders or fighting to replace management in order to get the acquisition approved. A hostile takeover can be accomplished through either a tender offer or a proxy fight.
Investopedia Says

Investopedia explains 'Hostile Takeover'

The key characteristic of a hostile takeover is that the target company's management does not want the deal to go through. Sometimes a company's management will defend against unwanted hostile takeovers by using several controversial strategies including the poison pill, crown-jewel defense, golden parachute, pac-man defense, and others.

Related Definitions

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    Friendly Takeover

    A situation in which a target company's management and board of directors agree to a merger or acquisition by another company. In a friendly takeover, a public offer of stock or cash is ...
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  • Bear Hug

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    • Merger Of Equals

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    • Flip-Over Pill

      A type of poison pill strategy in which shareholders have the option to purchase shares in the acquiring company at a deeply-discounted price. A flip-over pill is a shareholder rights ...
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    • Poison Pill

      A strategy used by corporations to discourage hostile takeovers. With a poison pill, the target company attempts to make its stock less attractive to the acquirer. There are two types of ...
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    • Saturday Night Special

      An obsolete takeover strategy where one company attempted a takeover of another company by making a sudden public tender offer, usually over the weekend. This merger and acquisition ...
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    • Bon Voyage Bonus

      Cash, securities or other assets paid to an individual or group for ceasing a particular activity. A bon voyage bonus is most often associated with hostile takeovers, with the target ...
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    • Black Knight

      A company that makes a hostile takeover offer for a target company. In mergers and acquisitions, a black knight attempts a takeover that the target company deems unwelcomed. When a ...
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    • Backflip Takeover

      An uncommon type of takeover that occurs when the acquiring company becomes a subsidiary of the acquired company.
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