|
If a cash bid, one must find a white knight or almost inevitably face
defeat. |
| Spirited defences are frequently effective against equity or mixed
offers, even if there is evidence or financial failure before the bid. |
|
Appeals to regulatory bodies may be effective.
|
|
An effective defence strategy must be pro-active not reactive.
|
Other tactics:
-
cross shareholdings;
-
groupings of firms;
-
dual classes of shares.
|
| See notes on takeover insurance. |
|
Typical
costs:
1%-2%
of bid value |
| |
| See also
DEFENCE Strategies |