Takeover Defense
When one company wants to acquire another, it is usually better if the target candidate is interested in the terms being offered. In such circumstances, conditions may be so attractive to shareholders that company management goes along with the unsolicited takeover bid.
While most unsolicited takeover offers are made at a premium to the recent market price of the target company’s shares, that doesn’t necessarily mean it is in the best interest of shareholders. There are many factors that must be considered in order for the board of directors to uphold its fiduciary responsibility to shareholders.
Alternatively, when company management or the board of director’s declines such an offer, perhaps because they believe their shareholders can receive an even higher offer from another bidder, or “white knight,” the original bidder may begin to start buying the target candidate’s stock on the open market, causing the situation to become hostile.
Crestrock Advisors professionals assist companies involved in hostile situations. We have numerous pre-takeover defense measures that can be adopted to guard against and deflect any unsolicited takeover bids. We offer objective advice and assistance to company management as they decide on a plan of action, while enhancing shareholder value at the same time.