Hostile Takeover


  • 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.

hostile bid

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.
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