Notable Hostile Takeover Cases

Hostile takeovers are a high-stakes event that can leave an indelible mark on corporate landscape. They involve a company that is buying attempting to take over the target firm against the wishes of the board and management. Despite their dramatic nature and public appearance hostile takeovers aren’t as prevalent as they once were.

In the 1980s, there were 160 hostile takeover bids. Board members were frightened by “corporate raiders”, such as Carl Icahn. These events were widely covered, which led to long and mudslinging talks.

One of the most notable instances was the acquisition of Cadbury by Kraft Foods Inc in 2009. It was https://jobdataroom.com/essential-features-of-virtual-data-rooms-for-business-growth/ the biggest hostile acquisition in the history of the company, and workers in the UK were outraged at the possibility of losing their jobs. Cadbury’s management rejected the offer due to it being an offer that was low-ball. Kraft increased its offer and eventually acquired the confectionery giant.

Another notable instance was the acquisition of Airgas by KKR in the year 2010. This hostile takeover of an industrial gas producer was among the biggest leveraged acquisitions in the era. The media coverage grew intense, and the deal was ultimately in a lengthy legal battle.

A more recent case is the acquisition of Twitter by Elon Musk in 2022. This hostile takeover entailed the use a poison pill defence, which led to a turbulent negotiation and sweeping policy changes following the acquisition. This was an example of an acquisition strategy that was successful in surviving the battle of hostile takeovers, proving how important it is for a potential firm to have a well-developed strategy to fend off unwanted offers.