Takeover FAQs:


Q: Is a takeover the purchase of one company by another?

A: Yes, In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.

Q: Is a takeover considered "hostile" if the target company's board rejects the offer?

A: Yes, and if the bidder continues to pursue it, or the bidder makes the offer directly after having announced its firm intention to make an offer.

Q: Are takeovers opportunistic – the target company may simply be very reasonably priced for one reason or another and the acquiring company may decide that in the long run?

A: Yes, and it will end up making money by purchasing the target company.

Q: Was a takeover Oracle's bid to acquire PeopleSoft?

A: Yes.

Q: Are takeovers to use section 16 of the Clayton Act to seek an injunction?

A: Yes, and arguing that section 7 of the act would be violated if the offeror acquired the target's stock.

Q: Are takeovers strategic in that they are thought to have secondary effects beyond the simple effect of the profitability of the target company being added to the acquiring company's profitability?

A: Yes.