Friendly Takeovers
A "friendly takeover" is an acquisition which is approved by the management. Before a bidder makes an offer for another company, it usually first informs the company's board of directors. In an ideal world, if the board feels that accepting the offer serves the shareholders better than rejecting it, it recommends the offer be accepted by the shareholders.
In a private company, because the shareholders and the board are usually the same people or closely connected with one another, private acquisitions are usually friendly. If the shareholders agree to sell the company, then the board is usually of the same mind or sufficiently under the orders of the equity shareholders to cooperate with the bidder. This point is not relevant to the UK concept of takeovers, which always involve the acquisition of a public company.
Read more about this topic: Takeover, Types of Takeover
Famous quotes containing the word friendly:
“This monument, so imposing and tasteful, fittingly typifies the grand and symmetrical character of him in whose honor it has been builded. His was the arduous greatness of things done. No friendly hands constructed and placed for his ambition a ladder upon which he might climb. His own brave hands framed and nailed the cleats upon which he climbed to the heights of public usefulness and fame.”
—Benjamin Harrison (18331901)