CS Professional Corporate Restructuring – Types of Takeovers
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While preparing for CS Preparation, you must have studied in details about Corporate Restructuring. In this article, we will discuss “Takeover”.
Meaning of Takeover
According to Companies Act, 1956, no particular definition is for Takeover.
But, in general terms, Takeover means the acquisition of one company by another company.
Type of Takeovers
Hostile Takeover
Big Companies attacking the small companies….. “It’s like sharks eating the small fishes or at times a small fish attacking the big fish”, results in a sudden increase in the market price of the share of the targeted company. Promoters of the target company fight back to retain the control and ownership of their company in their own hands. As Acquirer Company offers a high price as to acquire the target company, hence shareholders of the target company gets excited to sell the shares to the acquirer company at a much higher price than the market price of the shares of the target company.
For example Mittal Steel takeover Arcelor in Europe.
Learn complete Types of Takeovers
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