What is the difference between a hostile and a friendly merger?

Jump to Solution
Category:

What is the difference between a hostile and a friendly merger?

0
0

What is the difference between a hostile and a friendly merger?

Explanation & AnswerSolution by a verified expert

Explanation

Companies that are trying to acquire and merge with another firm would prefer to have the approval of the target company's board, shareholders, and management. But target company management may oppose the deal for several possible reasons, none the least of which is the fear of losing their jobs. Acquisitions can proceed without the approval of management, but it means the acquiring company will need to go directly to shareholders of the target and should not expect much  cooperation from management. Such situations are considered hostile, rather than friendly mergers.

Verified Answer

A hostile merger is one in which the management of the target company are opposed to the acquisition. A friendly merger is one in which management of the target is cooperative with the acquiring company.

Purchase this answer to view it. $5
Login/Sign up for free, load your wallet instantly using PayPal or cards and purchase this solution to view it.

Looking for the solution to this or another homework question?

If you need essay writing assistance or homework solutions, log in or sign up for a free account and ask our writers any homework question.