Hostile Firm's Strategies
- The strategy that is usually employed by the Hostile Firm is making an offer more lucrative than the White Knight's, so that the shareholders consider rejecting the White Knight's bid. This, however, can lead to bidding wars and finally to overpaying, by one or the other, for the target firm.
- Another option is known as the NL strategy. Here, the hostile firm allows the white knight to move ahead and waits for the acquisition to take place. Once things are settled between the two entities, the Hostile Firm launches a takeover offer for the White Knight. This takeover offer is generally a hostile one. The target (firm being bid on) can enter into standstill agreements with the White Knight to prevent it from turning Gray Knight.
Read more about this topic: White Knight (business)
Famous quotes containing the words hostile, firm and/or strategies:
“We fear our neighbor’s hostile mood because we are afraid that this mood will lead him to penetrate our secrets.”
—Friedrich Nietzsche (1844–1900)
“A book is like a man—clever and dull, brave and cowardly, beautiful and ugly. For every flowering thought there will be a page like a wet and mangy mongrel, and for every looping flight a tap on the wing and a reminder that wax cannot hold the feathers firm too near the sun.”
—John Steinbeck (1902–1968)
“By intervening in the Vietnamese struggle the United States was attempting to fit its global strategies into a world of hillocks and hamlets, to reduce its majestic concerns for the containment of communism and the security of the Free World to a dimension where governments rose and fell as a result of arguments between two colonels’ wives.”
—Frances Fitzgerald (b. 1940)