Hold out problem shareholders wait for a better offer

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Unformatted text preview: their shares. Hostile Takeover Benefits: Share price increase (+20% if successful for target. +2.5% for bidder). Cheaper than friendly offers. Control entirety of target with majority voting power. • • • • • Hostile Takeover Downsides: Lengthy and costly if well defended against by anti ­takeover measures, defensive management and shareholders. Hold Out Problem: Shareholders wait for a better offer as they do not lose much by doing so. Benefit from those who already sold. Buyer really wants the rest so will offer much higher. Anti ­Takeover Tactics: Corporate Charter Arrangements, Golden Parachutes, Staggered (Classified) Boards, Poison...
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This document was uploaded on 02/27/2014 for the course FINS 1613 at University of New South Wales.

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