Question

1 what are the advantages and disadvantages of each hostile take over approach a tender offer, proxy fight, and a creeping tender offer?

2 what examples of hostile takeovers have been in the news this past year?

3. What approach was used in these takeovers?

Answer 1

1

Tender offer

_{Advantages : The acquiring company usually offers to purchase target companies shares at a premium to the stocks current market price}

_{Disadvantages; a tender offer is an expensive way to complete a hostile takeover as investors pay SEC filings,attorney costs  and other expenses}

_{Proxy fight}

_{Advantages : these are very difficult to win as companies put various corporate governance tactics and include restrictive requirements in the bylaws .}

_{Disadvantages; a proxy vote may favor the acquirer if the target companies poor financial results negatively imp맨Ќimpact shareholders}

_{Creeping tender offer}

_{Advantages : a failure in the takeover of the target company will leave the acquirer with that it may lead to loss in future}

_{Disadvantages; It apply pressure on the target company to force the repurchase of shares at a sufficiently higher price to avoid a loss}

₂

_{a) MNG's attempted takeover of Gannett (in January 2019 )}

_{MNG Enterprise Inc privately offered to acquire Gannett Co.Inc for $1.37 billion}

_{Gannett Co.Inc rejected the proposal after engaging in private discussion .}

_{b) Merck's succssful takeover bid for Versum 2019}

₃

_{In case of MNG the hostile takeover attempt failed because Gannett inc used a proxy fight tactic to defend the hostile takeover}

_{In case of Merck's succssful takeover bid for Versum tenderoffer is what have been used}