Open AccessHostile Takeover Bids: Defensive Strategies
Author(s) -
Richard A. Shaw
Publication year - 2000
Publication title -
alberta law review
Language(s) - English
Resource type - Journals
eISSN - 1925-8356
pISSN - 0002-4821
DOI - 10.29173/alr517
Subject(s) - corporation , shareholder , business , chief executive officer , tender offer , liberian dollar , value (mathematics) , officer , corporate law , accounting , finance , corporate governance , law , management , economics , political science , machine learning , computer science
This article, after noting that many oil and gas companies are vulnerable to takeovers and that merger transactions are reaching record-breaking dollar volumes, examines and recommends steps that a corporation may take when facing a hostile takeover bid. These steps are defensive strategies that a chief executive officer, a board of directors, and other players should consider implementing when handling a merger. Recommended strategies for a corporation facing a takeover situation include creating a special committee, choosing appropriate financial and legal advisors, establishing a data room, and seeking other potential buyers. The author concludes that a successful defensive strategy can maximize value for a corporation's shareholders.