Takeover TacticsBy Prof Kiran Rodrigues

Developing a bidding or takeover strategy Bidder adopts

friendly approach to

targets board

Initial query/ casual pass

Proceed to negotiated settlement

Walk away

If target board response is yes

If target board response is no

Bidder adopts Aggressive approach to

targets board

or

Bidder adopts aggressive approach to

targets board Bidder chooses option A/B/C/D/E or some combination

Bear Hug (A)

Targets board responseYES

Proceed to negotiated settlement

IF NO

Proxy fight (B)

Open market purchases (C)

Tender offer (D)

Litigation (D)

YESTargets board response

NORescind tender offer & proceed

to negotiated settlement Implement tender offer

Advantages & disadvantages of takeover tacticsCasual pass Bear hug Open market purchases Proxy fight Tender offer Litigation Dawn Raid

The role of planning to avoid takeoverPre bid tactics Post bid defensesPoison pills Shark repellants Golden parachute

Greenmail Standstill agreement White knights ESOPs Recapitalizations Share buy back plans Corporate restructuring Litigation

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