Hostile Takeover

A hostile takeover is an acquisition attempt made directly to a target company's shareholders, over the objection of its board of directors, typically through a tender offer (a public offer to buy shares directly from shareholders) or a proxy fight (trying to replace the board with directors who will approve the deal).

Target companies facing a hostile bid can deploy defenses like a poison pill to make the acquisition prohibitively expensive, or seek a friendlier "white knight" acquirer willing to offer better terms, turning what started as hostile into a negotiated, board-approved deal instead.