Escaping from the Bears’ Hug: Defensive Measures against Hostile Takeover Bpids
Escaping from the Bears’ Hug: Defensive Measures against Hostile Takeover Bpids

Summary/Abstract: Business law terminology often refers to hostile takeover bids as the so called bears’ hug. This metaphor is based on the fact that it is both hard to get released of either. This paper however introduces a number of defensive measures which can be applied against the bidder. The purpose of these anti takeover defence measures can either be the prevention of hostile takeover bids or the maximization of the amount of premium payable in exchange for the control of the company. By these measures, bidders are impeded in trying to acquire target companies of the highest possible value for the lowest possible price. Defensive measures may serve to prevent hostile takeovers, however they can also become an integral part of the business activities and the business policy of companies. While planning defensive strategies, instead of assessing measures individually, they shall be analysed in entirety, taking their combined effects in consideration . Many of the available defence measures that are discussed in this paper have received serious criticism in the last few decades. Nevertheless, we find it important to introduce the most frequently applied measures.

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