Takeover and its Defense Mechanism - PPT.ppt
- 1. 1 Takeover and its Defense Mechanism
- 2. 2 CONTENTS 1. Meaning and Concept 2. Who can be a acquirer? 3. Kinds of Takeover 4. Forms of Takeover 5. Advantages Of Takeover 6. Disadvantages of takeover 7. Defense Measures 8. Comparison 9. Case law
- 3. 3 Meaning and Concept What is takeover?? Acquisition of shares with a view to gain control over the management Over The
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- 5. 5 >>Individual >>Group of individuals , >>Company >>Any other legal entity or Persons Acting in Concert with the acquirer. Who can be a acquirer??
- 6. 6 Kinds of takeover Friendly Takeover Hostile Takeover Bailout Takeover
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- 8. 8 Advantages of Takeover • Reduces overcapacity in industry. •Helps acquirer to expand the brand portfolio. •Generates benefits of economies of scale. •Helps attain increased efficiency as a result of corporate synergies •Helps in eliminating jobs that overlap in responsibilities • Reduces overcapacity in industry. •Helps acquirer to expand the brand portfolio. •Generates benefits of economies of scale. •Helps attain increased efficiency as a result of corporate synergies •Helps in eliminating jobs that overlap in responsibilities
- 9. 9 • Reduces competition and choice for consumers. • Results in job cuts. •Cultural differences lead to conflict. •Acquirer often burdened with hidden liabilities of the target entity. •Employees of the target company work in an environment of fear and uncertainty affecting motivational levels. Disadvantages of Takeover
- 10. 10 Defense Measures Staggered Board Poison Pills Super-Majority Amendment Golden Parachutes Proactive Defense Measures
- 11. 11 Reactive Defense Measures Defense Measures Attack the Logic of The Bid” White Knight & White Squire Greenmail Crown Jewel Litigation
- 12. 12 Are Takeovers Positive or Negative?
- 13. 13 Comparison
- 14. 14 Comparison
- 15. 15 Comparison
- 17. 17 Comparison
- 18. 18 Comparison
- 19. 19 CASE LAW Banarasi Das Saraf & Others v. Dalmia Dadri Cement Ltd
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