Hostile takeovers are high-risk event that could leave an indelible mark on corporate landscape. The acquirer attempts to acquire the company of the target against the wishes and desires of the board. Despite their dramatic nature and public appearance, hostile takeovers are not so common as they were.
In the 1980s, there were over 160 hostile takeover offers. Board members lived in fear from “corporate raiders”, such as Carl Icahn. These events were widely reported, often leading to lengthy and mud-slinging discussions.
One of the most notable instances was the acquisition of Cadbury by Kraft Foods Inc in 2009. It was the biggest hostile acquisition in the history of the company, and workers in the UK were furious at the possibility of losing their jobs. Cadbury’s management rejected the offer as it was considered to be low-value for the company. Kraft offered a sweeter deal and eventually acquired the confectionery giant.
Another noteworthy case is the acquisition by KKR of Airgas in the year 2010. This was a hostile purchase of an industrial gas provider and represented one of the largest leveraged buyouts of the past. The dispute turned into the subject of a media storm and the deal eventually became a lengthy legal dispute.
A more recent case is the acquisition of Twitter by Elon Musk in https://jobdataroom.com/essential-features-of-virtual-data-rooms-for-business-growth/ 2022. This was an unpopular takeover that required the use of the poison pill defense and resulted in tumultuous discussions and radical policy changes following the acquisition. This was a case of an acquisition that was strategically planned and able to weather the fight against hostile takeovers, proving how important it is for the target firm to have a well-defined strategy to fend off unwanted offers.