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Business
Hostile Takeover
When one company tries to buy another against the wishes of the target's management and board.
Hostile takeovers often involve going directly to shareholders with a tender offer or using proxy fights. Defences include poison pills, white knights, or golden parachutes. They are dramatic and expensive but can create value if the acquirer improves the target.
It's like someone trying to buy your house while you're still living in it and you don't want to sell.
Real world: In 2019, Kraft Heinz made a hostile bid for Unilever. Unilever's board rejected it, but the attempt forced Unilever to review its strategy and improve shareholder returns to avoid being taken over.
💡 A hostile takeover is capitalism's way of saying even big companies aren't safe if they underperform.