Hostile takeovers can be high-risk affair that leaves a lasting impression the corporate landscape. They involve a acquiring company 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 that were not solicited and board members feared of “corporate raiders” such as Carl Icahn. These events were widely covered, which led to lengthy and mudslinging discussions.
One notable example was the acquisition of Cadbury by Kraft Foods Inc in 2009. This was the biggest hostile takeover in history at the time, and it sparked outrage amongst UK workers who were worried about losing their jobs to foreign ownership. Cadbury’s management rejected the offer, claiming it was an unqualified bid. Then, Kraft sweetened the offer and bought the confectionary giant.
Another noteworthy instance was the takeover of Airgas by KKR in the year 2010. This hostile takeover of an industrial gas provider was one of the largest leveraged acquisitions of the period. The dispute became an instant media sensation and the deal eventually became a lengthy legal dispute.
A more recent example is the acquisition virtual data rooms of Twitter by Elon Musk in 2022. The hostile takeover required the use a poison pill defense and led to a tumultuous negotiation as well as a massive policy changes following the acquisition. This was an example of an acquisition strategy that was successfully able to withstand the hostile takeover battle, showing how crucial it is for the target company to have a well-planned strategy to fend off unwanted offers.