A Review of Defensive Strategies Used in Hostile Takeovers

Looking at these mind boggling and record breaking numbers and dollar amounts of the merger transactions in 1995, one tends to question himself WHY? The answer is, 'To restructure". With the real economic growth hovering between two and three percent, how can one possibly create that additional value needed for double-digit growth. In this era of globalization, for companies to maintain their competitiveness in regional and global markets within the parameters set by government negotiated "managed trade agreements", they simply have to restructure. A few of the restructuring tools include mergers & acquisitions, refinancing, management realignment, leveraged buyouts, and employees stock ownership plans. This thesis is intended to review the empirical data on previous mergers and acquisitions (involuntary or hostile) while exemplifying the five most targeted industries either in terms of their total takeover value or their numerical value of the deals struck. These industries include...

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