What is an enemy offer?
A hostile offer is an offer to buy a company made against the wishes of the Board of Directors of this company. Enemy offers can be performed in many ways, depending on the strategy that the acquiring society wants to use. If the offer is successful, the company will be sold whether the members of the Board of Directors are satisfied at a very high price. Enemy takeover can be made for many reasons, and advice is usually advisable to receive offers to avoid the enemy situation. While the Board of Directors can consult with the rejection of the offer, shareholders can agree to sell their shares, allowing the acquisition company to take over. In other cases, members of the Board of Directors are informed, express their dissatisfaction and the offering society moves forward to an enemy offer against their wishes.
One of the techniques used is proxy fighting. In the fight proxy, the company attempt to offer the offer encourages shareholders to vote on existing proceedings to replace itEven more favorable to take over. Another technique is to buy enough shares to obtain control of the management, allow change of management and forced sales of the company. Companies can also offer public offers as enemy offers.
granting an enemy offer is not illegal or especially unethical. But it may be unreasonable. When companies are sold with the consent of the Board of Directors, members of the Board of Directors provide a large number of important information. With the enemy offer is the only available information in the public domain. In some cases, this may be sufficient to make an informed decision and pay a fair price for the company. In other cases, the enemy offer may end with ugly surprises for the acquiring society.
shareholders can benefit from an enemy offer. Enemy offers usually lead to an increase in price offered, whichPeople allow premium over the current selling price of their shares. Companies are forced to offer bonuses to sweeten the agreement for shareholders to persuade them to rebound against the Board of Directors. This can take a very expensive takeover and can potentially expose the company a significant financial risk by binding resources on receipt.