Definition

Takeover (Ro.: preluare, Fr.: offre publique d’achat (OPA), n.f., Gr.:  εξαγορά, Cz.: skoupení většinového podílu společnosti) (See also: acquisition, golden parachute, joint venture, poison pill, proxy fight, takeover bid, tender offer) = a type of merger through which one company gains control over another company, by buying its shares.

Hostile ~ (Ro.: preluare ostilă, Fr.: offre publique d’achat (OPA) hostile, n.f.) = a type of takeover which is used as an instrument to gain control in the target public-traded company, against its will, by two main hostile tactics: approaching the shareholders in order to replace the company’s management with one which would agree with the takeover or merger (proxy fight), or approaching the shares by offering a fixed high price per share to the shareholders (making a tender offer).

 

Useful links

Legislation

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:142:0012:0023:EN:PDF - Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids, EU [English]

http://www.legislation.govt.nz/act/public/1993/0107/latest/DLM325509.html – Takeovers Act 1993, reprint as at 1 December 2014, New Zealand [English]

http://www.legislation.gov.uk/ukpga/2006/46/part/28 – Companies Act 2006, UK [English]

http://www.cnvmr.ro/pdf/legi/ro/Legea-297-2004.htm – Law 297/ 2004 on Capital Market Law, Romania [Romanian]

Case law

http://curia.europa.eu/jcms/upload/docs/application/pdf/2010-07/cp100072en.pdf - European Commission v. Ryanair Holdings plc., Case T‑342/07, Press release no. 72/2010, General Court of the European Union

Online Publications

http://www.cbsnews.com/news/valeant-vs-cephalon-putting-the-hostile-in-hostile-takeover/ - Edwards, Jim, 2011, Valeant vs. Cephalon: Putting the 'Hostile' in 'Hostile Takeover', CBSN

http://www.harvardilj.org/wp-content/uploads/2011/02/HILJ_52-1_Armour_Jacobs_Milhaupt.pdf - Armour, John, Jacobs, Jack B., Milhaupt, Curtis J., 2011, The Evolution of Hostile Takeover Regimes in Developed and Emerging Markets: An Analytical Framework, Harvard International Law Journal

http://money.howstuffworks.com/hostile-takeover.htm - Grabianowski, Ed, How Hostile Takeovers Work, Howstuffworks.com 

http://blogs.law.harvard.edu/corpgov/2014/05/01/corporate-takeovers-and-economic-efficiency/ - Small, R. Christopher, 2014, Corporate Takeovers and Economic Efficiency, HLS Forum on Corporate Governance and Financial Regulation

http://usir.salford.ac.uk/30240/1/Thesis_(Xiaofan_Wang).pdf - Wang, Xiaofan, 2013, Takeover Law in the UK, US and CHINA: A Comparative Analysis and Recommendations for Chinese Takeover Law Reform, Salford Law School

http://digitalcommons.pace.edu/cgi/viewcontent.cgi?article=1038&context=pilr - Magnuson, William, 2009, Takeover Regulation in the United States and Europe: An Institutional Approach, Pace International Law Review

http://blogs.wsj.com/moneybeat/2014/11/07/dealpolitik-controversial-takeover-alliances-unlikely-after-federal-court-ruling/ - Barusch, R., 2014, Dealpolitik: Controversial Takeover Alliances Unlikely After Court Ruling, The Wall Street Journal

http://blogs.wsj.com/moneybeat/2014/10/22/fending-off-hostile-bids-hasnt-done-wonders-for-stock-prices/ - Hoffman, L., 2014, Fending Off Hostile Bids Hasn’t Done Wonders for Stock Prices, The Wall Street Journal

http://www.rieti.go.jp/en/papers/contribution/tsuru/02.html - Kotaro, T., 2005, How to Cope with the Threat of Hostile Takeovers: Japanese Corporate Governance at a Crossroads, RIETI

http://www.cbr.cam.ac.uk/pdf/WP056.pdf - Hostile Takeover, Corporate Law, and the Theory of the Firm, ESRC Centre for Business Research, University of Cambridge

http://www.lawteacher.net/business-law/essays/hostile-takeovers-regulations-business-law-essay.php - Hostile Takeover Regulations, Law Teacher

Publications

Baums, Theodor, 2004, The Regulation of Takeovers under German Law, 15 European Business Law Review, Issue 6, pp. 1453–1460

Collectif Francis Lefebvre, 2013, Fusions & Acquisitions, Collection Mémento expert, Editeur Francis Lefebvre, pp.1383-1384

Duţescu, Cristian, 2009, Legea pieţei de capital comentată, Bucharest, C.H. Beck, pp. 455-469

Menjucq, Michel, Droit international et européen des sociétés, Montchrestien, L.G.D.J - Précis Domat, pp. 245-247

Tomasic, Roman, Bottomley, Stephen, McQueen, Rob, 2002, Corporations Law in Australia, 2nd edition, NSW, The Federation Press

 

By Diana Buzilă