[Sami Alsagier]

A hostile takeover is an aggressive approach used by one company to acquire another, often against the will of the target’s management. In such cases, the acquiring company buys shares directly from the stock market to gain control, bypassing the board’s approval.

The process starts with the acquiring company quietly purchasing shares of the target company, building its position over time until it gains significant influence. The goal is to reach a point where it has enough voting power to make decisions or replace existing management. If the board refuses a direct offer, the acquirer can make a tender offer directly to shareholders or buy shares on the open market.

While hostile takeovers can create opportunities, they are often contentious. They raise ethical questions about the balance of power between corporate leadership and shareholder rights. The target company’s board might employ various defensive strategies like poison pills or white knight mergers to fend off the takeover.

This approach is risky but can yield substantial rewards if executed effectively. It highlights the importance of shareholder loyalty, market positioning, and strategic planning in corporate acquisitions

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