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.
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.
One interesting case is the failed Sabana -ESR REIT merger in Singapore. In this case, the acquirer failed to get the support for two important activist minority shareholders, Quartz Capital Management and Black Crane Capital. The failure to engage these two activists resulted in they mobilizing minority shareholders to vote against the merger on the reason of the offer was at a sharp discount to the REIT book value.
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