The UK process gives everyone a chance to put their case to investors: not only does a target company do so but the acquirer must justify its offer to its shareholders.
Theoretically this is not aimed at any particular kind of acquirer, and would not block well -conceived deals, but that, of course, was said about the monopoly law as well.
For example, a “promoter ” might become a“ conglomerator ”, and a “professional manager ” might be an“ acquirer ” or an “inventor - researcher ”.
By and large, Britons seem to welcome the newcomers. Perhaps that might change if the next big acquirer is a state-backed Chinese firm, rather than a paternalistic Indian conglomerate.
Takeovers rarely add value to the acquirer and often lead to job losses and factory closures at the acquired company.
These types of contracts provide an acquirer with more confidence in the projected revenues of an acquisition target, as well as confidence in the long term defensibility of the business.
Depending on how many shares a potential acquirer buys in the market; a formal offer to other shareholders may be required under stock exchange regulations.
Perhaps that might change if the next big acquirer is a state - backed Chinese firm, rather than a paternalistic Indian conglomerate.
A suicide pill is a term for any high - risk poison pill strategy that may discourage a potential acquirer but also place the takeover target under severe financial pressure.
Consumers had a hard time gaining confidence in the new ownership even after the Chinese acquirer decided to keep most of IBM ’s original sales and technical supports teams.