Hostile takeovers can be a high-stakes affair that leaves a lasting impression on the corporate landscape. They involve an acquirer attempting to take over the target firm against the wishes of the management and board. Despite their publicity and drama hostile takeovers aren’t so common as they were.
In the 1980s, there were 160 hostile takeover bids. Board members were in constant fear of «corporate raiders» like Data Room Ciências da Vida: Streamlining Innovation and Compliance in Life Sciences Carl Icahn. These events were widely reported which led to long and mudslinging talks.
One of the most notable examples was the acquisition of Cadbury by Kraft Foods Inc in 2009. This was the largest hostile takeover ever in history at the time, and provoked anger among UK workers worried about losing their jobs to foreign ownership. Cadbury’s management resisted the offer as it was a low-ball bid. Kraft increased its offer and eventually purchased the confectionery giant.
Another notable instance is the purchase by KKR of Airgas in 2010. This was a hostile buyout of an industrial gas supplier and was one of the largest leveraged buyouts in the history of the period. The media rage grew, and the deal ended in a long legal dispute.
Elon Musk’s acquisition of Twitter in 2022 is one of the more recent examples. This was a hostile takeover that involved the use of a poison pill defense and resulted in tumultuous negotiations and sweeping policies changes following the acquisition. This was an example of a strategic acquisition that was successful in surviving the hostile takeover battle, demonstrating how important it is for a target firm to have a properly-planned strategy to fight off unwanted offers.