Hostile takeovers are high-risk event that can leave an imprint on the corporate landscape. The acquiring company attempts to take over Safeguard Your Assets with the Best Data Room Providers the company of the target against the wishes and preferences of the board. Despite their dramatic nature and public appearance, hostile takeovers are not as prevalent as they once were.
In the 1980s, there were over 160 hostile takeover offers. Board members lived in fear from “corporate raiders”, such as Carl Icahn. These incidents were widely covered and often led to long, mud-slinging talks.
One of the most notable examples was the acquisition of Cadbury by Kraft Foods Inc in 2009. This was the biggest hostile takeover in the history of the company at the time, and it provoked anger among UK employees who were concerned about losing their jobs to foreign ownership. Cadbury’s management rejected the offer due to it being an extremely low-ball offer. However, eventually, Kraft sweetened the offer and bought the confectionery giant.
Another notable instance is the takeover by KKR of Airgas in 2010. This hostile takeover of an industrial gas company was one of the largest leveraged acquisitions of the time. The media frenzy escalated, and the deal was ultimately in a lengthy legal battle.
Elon Musk’s acquisition of Twitter in 2022 is an earlier example. This was an unpopular takeover that required the use of a poison pill defense, and resulted in tense negotiations and major policy changes post-acquisition. This was a case of an acquisition that was strategically planned and successful in surviving the hostile takeover battle showing how crucial it is for a prospective firm to have a properly-planned strategy to block unwanted offers.