Hostile takeovers can be a high-risk event that could leave an indelible mark on the corporate landscape. They involve an acquiring company trying to acquire the target company against the wishes of the board and management. Hostile takeovers, despite their drama and public nature, are less common than they used to be.
During the 1980s, there was a total of 160 hostile takeover bids that were not solicited, and board members were afraid of «corporate raiders» like Carl Icahn. These events were widely publicized and often led to long, mud-slinging negotiations.
A notable example is the acquisition of Cadbury by Kraft Foods Inc in 2009. This was the largest hostile takeover in the history of the company at the time, and it was a source of anger for UK employees who were concerned about losing their jobs to foreign ownership. Cadbury’s management was against the deal, arguing that it undervalued the company. However, eventually, Kraft sweetened the offer and took over the confectionery giant.
Another notable instance was the acquisition of Airgas by KKR in the year 2010. The hostile acquisition of an industrial gas company was one of the largest leveraged acquisitions of the time. The battle became a media frenzy, and the deal ultimately was sunk into a lengthy legal battle.
Elon Musk’s acquisition of Twitter in 2022 is a more recent example. This was a hostile takeover https://jobdataroom.com/essential-features-of-virtual-data-rooms-for-business-growth/ that involved the use of a poison pill defense, and resulted in tense negotiations and major policy changes following the acquisition. This was a case of an acquisition strategy that was successfully able to withstand the fight against hostile takeovers, proving how important it is for the target firm to have a well-developed strategy to block unwanted offers.
