hostile takeover

Unwanted approach from one company, the predator, to purchase another, the target. Even though the target company may not wish to be bought by the predator, if the predator can acquire enough of the target's shares to gain control, it can install its own directors. Once a predator has made its intentions clear, there is usually a time limit set by which it must succeed in persuading the company's shareholders to back the bid. A target company can employ a range of strategies to defend itself, including finding a white knight to rescue it.

Hostile takeover bids are often criticized for being an unnecessary drain on the resources of both predator and target companies because both will spend large sums persuading the public and shareholders of the merits of their respective positions. Predators will argue that ultimately they are unlocking shareholder value.