Hostile Takeover Defenses that Maximize Shareholder Wealth.

Companies enact defenses against hostile takeovers to protect their independence and current management initiatives, or to help ensure that hostile bidders are pressured to present their best offers. The critical challenge for executives is to determine—in anticipation of attacks on their firm—which defense strategies will best fortify stockholder investments. To provide a basis for determining recommendations, this article reviews the motivations for hostile takeovers, discusses the effects of popular defenses, and showcases several high-profile takeover bids, all designed to provide executives with well reasoned and empirically supported evaluations of the major strategies they can use to maximize shareholder wealth.

Main Author: Pearce II, John A.
Other Authors: Robinson Jr, Richard B.
Format: Villanova Faculty Authorship
Language: English
Published: 2004
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