hostile takeover - Business DefinitionThe American Heritage® Dictionary of Business Terms Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
hostile takeover - Investment & Finance Definition
A takeover of a corporation that is launched without the approval or agreement of the target corporation. A takeover doesn’t technically become hostile until the potential acquirer formally bypasses the board of directors and takes its offer directly to shareholders in a proxy contest. Even though a takeover is hostile, if the price being paid is high enough, the board may feel compelled to recommend the deal. However, management can mount various tactics to repel an unwanted takeover such as greenmail, finding a white knight, or a poison pill. See also greenmail, white knight, poison pill.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.