Takeover Defense Strategy

This topic contains 4 replies, has 5 voices, and was last updated by  Ingrid Holbik 7 months, 2 weeks ago.

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  • #92253

    Ang Pek How
    Participant

    Based on your opinion, what is the best takeover defense tactics and strategy? why?

    #93540

    Silman Ondrej Dia
    Participant

    Hi there,

    I believe one of the strongest takeover defence strategy is the cross-shareholding that Japanse keiretsu companies have put in place. Companies own each others’ shares which prevent unsolicited takeover attempts.
    In addition this strategy could be coupled by a poison pill tactic which would consist of issuing stock warrants to dilute the acquirer’s holding to make the takeover more expensive.
    I believe both such strategy and tactic would constitute a sound strong defence mechanism in face of a takeover.

    Reference:

    #93765

    Hello There,

    Isn’t that Japanese strategy impede takeover and acquisition activities required in a capital market?.

    #96177

    Mateusz Młynarczyk
    Participant

    An interesting option is the Carlsberg’s case, where the main owner of Carlsberg Brewery is Carlsberg Foundation. This solution practically makes it impossible to carry out a hostile takeover, because it is not possible to take over the foundation.

    #102641

    Ingrid Holbik
    Participant

    Mateusz’s case study is very interesting. Thank-you for sharing.

    Another option in capital markets is to have blocks of investors that have significant shareholdings. This creates stability and makes any kind of takeover very difficult to undertake.

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