- A purchase where one company purchases another but the target company's management is against the sale. In a hostile takeover, the bidding company will go around the target company's board of directors in order to buy the company directly from their shareholders, often at a price well above market value.
Related Terms and Acronyms
- Annex — Definition,
- To add one thing onto another.
- Backflip Takeover — Definition,
- A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
- Friendly Takeover — Definition,
- When a company purchases another and both parties' management approve.
- Investment Canada Act (ICA) — Acronym, Canada,
- A Canadian law that gives the government power to deny foreign investments of "significant" size if they fail to provide a "net benefit to Canada."
- Reverse Takeover — Definition,
- The purchase of a public company by a private company, often to avoid the IPO process.
- Takeover — Definition,
- The purchase of a company by another.