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Who are antitakeover defences designed to protect?

Who are antitakeover defences designed to protect?

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Answer #1

Anti Takeover defences refer to the takeover in which the company intends to the 51% of share capital of the target company. This takeover can be hostile or can be friendly.

The anti-takeover defences are designed to protect the full operational control of the company.If a person/company buys 51% of the share capital, it gets operational control over the business.

Some anti takeover defence are following:

  • The company do not issue additional share capital thereby not diluting the share capital held by the promoters.
  • Making the acquisition costlier to acquiring company by amalgamating their company with another company
  • By selling their significant assets thereby making the deal less favorable to the acquirer.
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