Mergers, takeovers and acquisitions

[Major Algy Wymondham]

Anyone able to help an old chap out and explain what these are really all about? Despite reading the business section on occasion, I must confess I am rather deficient in knowledge on this subject but I find it oddly fascinating.

If one company makes an offer, and shareholders accept against the wishes of company directors, is this what is known as a hostile takeover? I don't have an MBA or business background so any insight would be appreciated, pardon my ignorance.

Best,

Algy

[Laddy Muck]

I say Major, thinking of acquiring the adjacent Estate?

Good to bump into you again old fellow.

I know nothing about mergers etc...from the poor side of the family and all of that...not that you'd know anything about that...eh old bean?

Have to dash...

[luciam]

Major

Yes you are correct. If a company (the bidder) makes a takeover offer and the board of the target company does not support the offer, it is known as a hostile bid (and if the offer is ultimately accepted by the shareholders then that would be a hostile takeover). The alternative scenario is where the board recommends an offer to shareholders. Often a takeover approach is resisted by the board initially but eventually recommended to shareholders when the price is right (e.g. the takeover of Cadbury by Kraft).

[PeckhamRose]

Mergers, also known as a Marriage, when there are already children or a child ('acquired') by the one (usually the female) being 'taken over'.

[karter]

Major old chap, forget all of this business nonsense, grab the sports section instead, Wimbledon is on did you know?

[Salsaboy]

Bad form to discuss business. Just leave it all to m'broker dontcha know. Pip pip.