Who benefits from take over resistance tactics?
According to the finance literature, a takeover is a process whereby a firm acquires another firm, resulting in a change of the controlling interest of the acquired firm. Takeovers can occur through acquisitions, proxy contests and going-private transactions. They can be friendly when the management of the target firm is receptive to the bidder offer or they can be hostile when target firm managers resist takeover attempts by using defensive tactics. According to Ross et al (2010), takeovers can result in change of firm policies, layoffs, terminations, or overhaul of business operations.
To analyze who benefits from a takeover resistance tactic, we should first examine the reasons or
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Other tactics after the company in in play include greenmail and standstill agreement, white knight and white squire, recapitalization and repurchases where managers issue debt to repurchase shares raising the market share price, making it less attractive to the bidder; exclusionary self-tenders and asset restructuring.
These tactics are built by management for self-protection reasons, being severe, (blocking takeovers) or soft tactics with no substantial impact on the offer price. However, empirical evidence shows that although manager’s defensive tactics may sometime rarely shareholders by increasing wealth, in general, these tactics do not have a positive impact in the share price of the target firm. According to DeAnglelo and Rice (1983) cited in Ruback (1987.p56-57), they found no evidence of share price reaction to adoption of corporate charters amendment when analyzing 53 firms using staggered boards as well as the effect of super majority provision.
Ho (1986) cited in Ruback (1987), found no evidence of existence of abnormal return for a sample of 23 poison pills. This conclusion is also consistent with findings of Kidder, Peabody and Company for a sample of 167 poison pills where no stock price change was observed.
The cultural revolution is a strange period in Chinese history laced with intense struggle and anguish. The cultural revolution mobilized the all of society to compete for all opposing factions that they belonged to (Ong, 2016). Mao mobilized the young people of society during a background of political turmoil, which helped Mao to mobilize the students in order to enforce his political legitimacy and ideas (Ong, 2016). Mao’s charismatic authority created his personality cult and most defiantly leant a helping hand in mobilizing the red guard movement (Ong, 2016) (Weber, 1946) (Andreas, 2007). No matter which faction of the red guard they belonged to, they all mobilized against their common enemy; the better off, upper class. (Ong, 2016). Multiple ideologies within the youth led red guard movement explain why the movement gained momentum and became incredibly powerful (Walder, 2009).
In real life, the theory cannot provide a straightforward strategy used by the competitor or to be used against the competitor because it is not clear what strategy the competitor has chosen (Li & Yu,2016).
Mergers and takeovers are forms of external growth within a business. External growth occurs when one firm decides to expand by joining together with another. A takeover specifically refers to the gaining control of a firm by acquiring a controlling interest in its shares (51%). Merger, on the other hand, means the joining with another firm to form a new combined enterprise, shares in each firm are exchanged for shares in the other.
Ancestors can only tell of what they've been told, and sometimes it isn't the whole story or the truth. But there are no records of the Underground Railroad and so estimates from ancestors and historians are all that can be contrived to come up with an idea of what really happened on and away from the plantations.
• Transaction structures—the takeover could involve a cash offer, a share offer, an asset swap or a combination of these methods. Need to consider legal, taxation and accounting issues.
of the acquiring corporation . . . , and the acquiring corporation must be in control of the other corporation immediately after the
In this chapter, we first provide coverage of expansion through corporate takeovers and an overview of the consolidation process. Then we present the acquisition method of accounting for business combinations followed by limited coverage of the purchase method and pooling of interests provided in a separate sections.
Part 1:What is a hostile takeover and what generally happens to the stock price of the firm being acquired in a hostile takeover?
The Lord’s Resistance Army insurgency is an ongoing guerrilla campaign that started in 1987. The Lord’s Resistance Army (LRA) rebel group was led by Joseph Kony. Kony proclaims himself as the “spokesperson” of god. His objective is to overthrow the Ugandan government, establishing a theocratic state based on the Ten Commandments and Acholi tradition.
The Lord’s Resistance Army is one of the longest running and most violent armed groups in Africa. The US State Department reports that it has been active since 1986, it was formed in northern Uganda to fight Uganda’s government. It has a sordid and violent history including the forcible recruitment of over 66,000 children for both sex slaves and child soldiers. The longevity and continued activity of the Lord’s Resistance Army can be attributed to its leader, Joseph Kony.
In the early summer of 1942, a gathering of young fellows — including Willi Graf, Christoph Probst and Hans Schol shaped an a peaceful resistance amass in Nazi Germany, comprising of various understudies from the College of Munich and their reasoning educator. The gathering got to be distinctly known for a mysterious pamphlet crusade, enduring from June 1942 until February 1943, that called for dynamic resistance to the Nazis administration. The gathering co-created six hostile to Nazi Third Reich political resistance flyers. Calling themselves the White Rose, they trained Germans to inactively oppose the Nazis. They had been frightened by the conduct of the Germans on the Eastern Front where they had seen a gathering of exposed Jews being shot in a pit.In the early summer of 1942, a gathering of young fellows — including Willi Graf, Christoph Probst and Hans Schol shaped an a peaceful resistance amass in Nazi Germany, comprising of various understudies from the College of Munich and their reasoning educator. The gathering got to be distinctly known for a mysterious pamphlet crusade, enduring from June 1942 until February 1943, that called for dynamic resistance
Peaceful resistance is an important approach to resolving public issues. It always has been. Also known as civil disobedience, peaceful resistance positively impacts a free society. It can have negative ones, but they are mostly positive.
Takeover tactics have been used throughout history. Three important tactics are Bidding strategies, Casual pass, and Bear hugs. Bidding strategy is 2/3 successful to the 1st bidder. Bidders have to watch out for not only the target company, but also for other bidders. There has been a higher successrate on bidders who actually contact the target company first in hopes of a more amiable bid. A second bid can be even more successful, therefore the first bidder shouldn’t offer too much to prepare for a comeback bid. This is called Optimal Bidder. Casual pass is an informal overture before bidding . The problem with this is that it gives the target advance warning of the possible takeover. Bearhugs apply pressure to the target before bidding. The acquirer contact the Board of directors and state that they will go to the stockholders and present an offer to them without the Board’s consent. This forces the target to take a public position and puts pressure on the Board because it must consider the offers or they violate fiduciary duties.
Many organizations will either experience a merger or acquisition to try to absorb the costs during unstable market times. Mergers and acquisitions to employee’s usual mean staff reductions and major changes, especially for an acquisition which, is when another company purchases a company and becomes a new company. (McClure, 2016)
“You may have to fight a battle more than once to win it” -Margaret Thatcher. Wars, battles, and conflicts are fought every day. Some are immense, physical events such as cities repeatedly bombing one another day after day for all to see; some however, are small, mental affairs such as depressed people being able to get out of their bed for work or school when they had wished the night before to not wake up in the morning. Winning a battle over a condition those around cannot even see is a tough concept to deal with, however, there are millions of people everyday who fight battles with their mental demons. Post-Traumatic Stress Disorder, depression, and anxiety are just a few disorders that wreak havoc on the minds of society every single day. Post-Traumatic Stress Disorder is a major condition that affects many people.