Which M&A defence strategies do you find most interesting?
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Of the many hostile takeover defence strategies, which do you find most interesting? I found the White Knight to be particularly effective as a bluff to bid values higher.
Hi Ben,
I personally found the poison pill defence strategies to be the most interesting, as in this case target entity shareholders would rather risk diluting their own shares, and/or accept a drop in their stock price in order to fend off a hostile takeover attempt. These scenarios accurately represent a “pick your poison” scenario!I agree with Rami, the poison pill moves are very interesting because this strategy is not limited with diluting the shares but also related with “to corrupt” the target’s structure. Although the target is corrupted, I believe that there still is a chance to be bought by the hostile buyer. furthermore, swallowing enough pills to be sure the hostile buyer won’t buy the target can cause various damages.
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