![]() Under Mergers and Acquisitions (“M&A”), the term takeover refers to the acquisition of one company by another. A takeover becomes hostile when the acquisition of the target company is opposed by its management. In such a situation, instead of backing off, the acquiring company directly approaches the target company’s shareholders for the purpose of acquisition which either takes place through a tender offer or a proxy fight. There are various defense strategies that can be employed by the target company like buyback, white knight, pacman, et cetera. Recently, in 2019, the Indian IT sector witnessed its first ever hostile takeover where Mindtree Limited (“Mindtree”), was acquired by Larsen and Toubro Limited (“L&T”). In this article, I try to unpack this acquisition and the reasons for the acquisition turning hostile. ![]() Furthermore, I also explain in detail the concept of hostile takeovers, its strategies, and defenses. ![]()
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