How much stake does someone need to perform a hostile takeover? - ProProfs Discuss
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How much stake does someone need to perform a hostile takeover?

How much stake does someone need to perform a hostile takeover?

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Asked by F.William, Last updated: Dec 22, 2024

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D. Gray

D. Gray

D. Gray
D. Gray

Answered May 10, 2018

A hostile takeover is more like a proxy war in which the shareholders of the company have to be convinced that there is a major need to replace the board of directors of the particular company. So a company does not necessarily need to hold shares in its target company.

A hostile takeover usually begins with a tender offer for some control in the target company, followed by a proxy fight, and at the end the acquirer has to buy all the important stocks in the open market. Hence, all important stocks must be bought for a hostile takeover. A few stocks won’t work!

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