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:
“The comfortable smell of friendly fingers,
Hair’s fragrance, and the musty reek that lingers
About dead leaves and last year’s ferns. . . .”
—Rupert Brooke (1887–1915)