What is the takeover offer?

Acceptance offer is an offer to buy a sufficient number of shares to overtake the current shareholder of the majority. There are a number of different strategies of taking offers, including friendly, hostile and two -stage. The high acceptance profile almost always offers a temporary flow on the stock market, which can go up or down depending on the public and the market offering market.

Directors of the target company inform the board or individual. Depending on the offer offer, the directors then recommend the shareholders whether to accept or refuse the acceptance offer. In small companies, it is easier to approve a friendly takeover, because the board of directors often consist of majority shareholders. However, if the Board of Directors believes that it is not in the interest of society to adopt conditions, they may refuse the offer of takeover, which sets the ground for the enemy takeover of the target society. If offeringThe company is trying to buy majority shares without first informing the Board of Directors, it is considered an enemy maneuver. Similarly, if the Board of Directors refuses to take a friendly offer, the applicant may decide to continue the persecution of the shareholders without entering the Board of Directors.

Enemy takeover can be carried out in different ways, almost always ending with a disaster for the current board of directors if the party is successful. The bid company may attempt to influence shareholders to vote by the Board of Directors in the interests of the company using the proxy tactics. They can also easily buy all stocks available on the market to get an impact on the Council's change on acceptance members. In the offer offer, the applicant may offer to pay a fixed price over the market value of shares that the Board of Directors can be forced to accept.

There are a number of methods that the target corporation helpsShe avoids her enemy takeover, but they carry these risks. In the defense of white or gray knightly defense, the target company gains help further corporations to save them, sometimes offering incredible concessions in return for buying a sufficient amount of stocks to take over the applicant. Another tactic, called Jonestown, Suicide or offers offens, involves taking over a large amount of debt or dilute the value of shares to make the target company less attractive.

In 2008, Microsoft offered an offer of Yahoo $ 46.6 billion in the middle of media madness. What would be the greatest takeover in Microsoft's history was allowed to exclude after repeated attempts to take over, were rejected by the Yahoo Board. As soon as Microsoft had to decompose the Cnabid was extremely more money than they originally intended, the offer. Industry analysts suggest that this takeover would be bad for both companies andIt resulted in 15% loss of jobs for Yahoo employees.

For consumers, there is a concern for taking over the market that there are fewer options available on the market, which often results in rising prices and lower competition. For workers in a successfully targeted company, new management can often lead to losses of jobs and serious disturbance of established command. Generally, the offer of takeover is considered to be good for corporation, poor for consumers and at a lower level. Critics also see the offer of takeover as a slippery slope that can lead to violation of antitrust laws and needs serious legal parameters.