28 Set Notable Hostile Takeover Cases
Hostile takeovers can be a high-risk business that leaves a lasting impression the corporate landscape. The acquiring company attempts to acquire the target company in defiance of the wishes and preferences of the board. Hostile takeovers, despite their drama and public nature aren’t as frequent as they were in the past.
During the 1980s there were over 160 hostile takeover offers. Board members lived in fear from “corporate raiders”, such as Carl Icahn. These incidents were widely reported, leading to lengthy and mudslinging discussions.
A notable example is the acquisition of Cadbury in 2009 by Kraft Foods Inc. It was the largest hostile acquisition in history and employees in the UK were furious at the possibility of losing their jobs. Cadbury’s management rejected the offer due to it being a low-ball bid. Eventually, however, Kraft sweetened the offer and bought the confectionery giant.
Another noteworthy instance was the takeover of Airgas by KKR in the year 2010. The hostile acquisition of an industrial gas provider was among the biggest leveraged acquisitions of the time. The battle became the subject of a media storm, and the deal ultimately became https://jobdataroom.com/essential-features-of-virtual-data-rooms-for-business-growth/ a lengthy legal dispute.
Another recent instance is the acquisition of Twitter by Elon Musk in 2022. This was a hostile takeover that involved the use of the poison pill defense and led to tense negotiations and massive policies changes following the acquisition. This was an example of a strategic acquisition that was successfully able to withstand the fight against hostile takeovers, showing how important it is for the target firm to have a properly-planned strategy to fend off unwanted offers.
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