Notable Hostile Takeover Cases

Hostile takeovers can be a high-risk event that could leave an indelible mark on corporate landscape. They involve a company that is buying attempting to take over the target firm against the wishes of the management and board. Hostile takeovers, despite their escalating drama and public nature aren’t as frequent as they were in the past.

In the 1980s, there were 160 hostile takeover bids. Board members were constantly in fear of “corporate raiders”, such as Carl Icahn. These events were widely covered, which led to lengthy and mudslinging talks.

A good example is the acquisition of https://jobdataroom.com/essential-features-of-virtual-data-rooms-for-business-growth/ Cadbury in 2009 by Kraft Foods Inc. It was the largest hostile acquisition in history, and workers in the UK were outraged at the prospect of losing their jobs. Cadbury’s management rejected the offer as it was an unqualified bid. Kraft increased its offer and eventually bought the confectionery giant.

Another noteworthy case is the takeover by KKR of Airgas in 2010. This hostile takeover of an industrial gas supplier was among the biggest leveraged acquisitions in the era. The media frenzy escalated, and the deal ended up in a lengthy legal dispute.

Elon Musk’s acquisition of Twitter in 2022 is an example from the past. The hostile takeover required the use a poison pill defense and led to a tumultuous negotiation as well as a massive policy changes after the acquisition. This is an example of how an acquisition with a strategic plan was able to outlast the hostile takeover battle. It shows how important it is to have a well-planned strategy to fight off unwanted offers.