Hostile TakeoversIntroduction:When one company acquires another, either without any agreement or under an agreement to target the company's management, it is called a "hostile takeover". The main feature of the hostile takeover is to take over the management of the company, so that they can run it and generate more profits. The company uses two ways to achieve a hostile takeover: public offerings and proxy fights. Hostile takeovers have been a part of the corporate world for many years. The number of acquisitions is constantly increasing. Many factors lead to an increase in hostile takeovers such as: financial leverage, political conditions, high profits etc. The takeover has significant adverse effects on human factors, the targeted companies, their employees, their families, and state economies.History of Hostile TakeoversThere was a rapid increase in hostile takeovers in the 1980s. Nowadays, annual transaction activity amounts to $2 trillion, representing more than 30,000 transactions worldwide. There are six fusion waves so far. These merger waves occurred in 1900, 1920...
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