Hostile Takeover

About

A takeover in business refers to the purchase of one company by another, where the purchasing company is known as the acquirer or bidder and the company being purchased is called the target. In the UK, this term specifically applies to the acquisition of public companies whose shares are publicly listed, distinguishing it from the acquisition of private companies. The management of the target company may choose to support or oppose a proposed takeover, leading to different classifications of takeover types including friendly, hostile, reverse, or back-flip transactions. Financing these corporate acquisitions typically involves various methods such as loans, bond issues that may include junk bonds, or straightforward cash payments. The financing can also incorporate shares in the newly formed or acquiring company as part of the transaction structure.