Hostile Takeovers: Emerging Trend

Abstract

There was a merger and acquisition boom in India and since liberalization India has experienced a number of Hostile takeover attempts. Hostile takeover of companies is a rather well-known phenomenon in the corporate sphere. Since liberalization 
corporate takeover has taken two forms – friendly and hostile. In a friendly takeover, the controlling group sells its controlling shares to another group of its own accord. In a hostile takeover, an outside group launches a hostile attack to take over the 
control of the company without the concurrence of the existing controlling group. This is normally done by means of an open offer for purchase of equity shares from the shareholder of the target company