It is comprehensive Presentation covering all the aspects of Takeover defenses like
Active Takeover Defense and Preventive Take over Defense
Hope you enjoy reading it as much as i enjoyed working it
Portfolio revision, securities, New securities, existing securities, purchases and sales of securities, maximizing the return, minimizing the risk, Transaction cost, Taxes, Statutory stipulations, Intrinsic difficulty, commission and brokerage, push up transaction costs, reducing the gains, constraint, Taxes, capital gains, long-term capital, lower rate, Frequent sales, short-term capital gains, investment companies, constraints, established, objectives, skill, resources and time, substantial adjustments, mispriced, excess returns, heterogeneous expectations, better estimates, generate excess returns, market efficiency, little incentive, predetermined rules, changes in the securities market, Performance measurement, Performance evaluation, superior or inferior, small investors, better performance, prompt liquidity, comparative performance, purchase and sale of securities.
Portfolio revision, securities, New securities, existing securities, purchases and sales of securities, maximizing the return, minimizing the risk, Transaction cost, Taxes, Statutory stipulations, Intrinsic difficulty, commission and brokerage, push up transaction costs, reducing the gains, constraint, Taxes, capital gains, long-term capital, lower rate, Frequent sales, short-term capital gains, investment companies, constraints, established, objectives, skill, resources and time, substantial adjustments, mispriced, excess returns, heterogeneous expectations, better estimates, generate excess returns, market efficiency, little incentive, predetermined rules, changes in the securities market, Performance measurement, Performance evaluation, superior or inferior, small investors, better performance, prompt liquidity, comparative performance, purchase and sale of securities.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Objectives & Agenda :
Companies can use either equity or debt form to raise capital. Equity can be raised by way of rights issue, bonus issue, private placement, public issue, etc. An offer of securities made to the existing shareholders of the Company is a rights issue. Bonus shares may be issued to the members of the Company out of its free reserves, or securities premium account or capital redemption account. The webinar covers the statutory / practical aspects of rights issue and bonus issue, including caveats relating to such issues.
Merger and Acquisition ppt - SlideShareJanvhi Sahni
International Business Management (IBM) - BBA & MBA NOTES / POWER POINT PRESENTATION.... This ppt will tell you about the merging and takeover companies in India along with various examples. Presented By: Janvhi
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Objectives & Agenda :
Companies can use either equity or debt form to raise capital. Equity can be raised by way of rights issue, bonus issue, private placement, public issue, etc. An offer of securities made to the existing shareholders of the Company is a rights issue. Bonus shares may be issued to the members of the Company out of its free reserves, or securities premium account or capital redemption account. The webinar covers the statutory / practical aspects of rights issue and bonus issue, including caveats relating to such issues.
Merger and Acquisition ppt - SlideShareJanvhi Sahni
International Business Management (IBM) - BBA & MBA NOTES / POWER POINT PRESENTATION.... This ppt will tell you about the merging and takeover companies in India along with various examples. Presented By: Janvhi
Hostile Takeover Strategies with Analysis of Case StudiesPavan Kumar Vijay
Hostile Takeover, acquisition of a business by making unsolicited bids and giving attractive offers to the stakeholders to amass the controlling share and then bid to take control of the business and the management. The acquirer attempts to acquire a business by convincing small shareholders and financial institution of bright future prospects and also give them much larger premium for their shares. This is done to get an upper hand in that specific segment of Industry as well as market by acquiring an established business with proven track records.
How much negative this kind of takeover may look, there are many positive outcomes too. A bid of hostile takeover compels the management to work efficiently, true value of a business comes to fore, shareholders get an opportunity to sell their stake at a good premium etc.
Five Things Every Founder Must Know About Preference Shares | Hooi Yen ChinJessica Tams
Delivered at Casual Connect Asia 2016
You met the VCs, emailed your information decks and delivered your pitch. Then the term sheets arrive. You open them up and the alien language hits you! This session discusses the legal nature of preference shares, the common terms used in relation to preference shares and their impact on a funding round. Arm yourself with the knowledge you need to negotiate the preference share rights that investors commonly ask for.
The board of directors might decide it is in the best interest of shareholders to sell the corporation to new owners. In theory, a change in control only makes sense when the value of the firm to new owners, minus transaction costs, is greater than the value of the firm to current owners.
This Quick Guide examines the market for corporate control.
It answers the questions:
• Why do companies merge?
• Do mergers improve performance?
• Who gets the value in a merger?
• How do companies protect themselves from hostile bids?
• Do these protections help shareholders?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
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where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
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A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Topics
• Definition
• Some Concepts
• Types
• Preventive Defense
• Types of Preventive Takeover Defense
• Active Defense
• Types of Active Defense
3. Hostile Take over
A takeover is considered "hostile" if the
target company's board rejects the offer, but
the bidder continues to pursue it, or the
bidder makes the offer without informing
the target company's board beforehand.
4. Terms used
• Killer bees are firms or individuals that are
employed by a target company to fend off a
takeover bid; these include investment bankers
(primary), accountants, attorneys, tax
specialists, etc.
They aid by utilizing various anti-takeover
strategies, thereby making the target company
economically unattractive and acquisition more
costly.
5. Types of Hostile Takeover
• Tender offer: acquiring company makes a
public offer at a fixed price above the current
market price
• Creeping Tender offer: purchasing enough
stock on the open market, known as a creeping
tender offer, to effect a change in management
• Proxy Fight: tries to persuade enough
shareholders, usually a simple majority, to
replace the management with a new one which
will approve the takeover
6. • The famous proxy fight was Hewlett-Packard's
takeover of Compaq. The deal was valued at $25
billion, but Hewlett-Packard reportedly spent huge
sums on advertising to sway shareholders.
• HP wasn't fighting Compaq -- they were fighting a
group of investors that included founding members
of the company who opposed the merge. About 51
per cent of shareholders voted in favour of the
merger. Despite attempts to halt the deal on legal
grounds, it went as planned.
Proxy Fight
7. Categories of Takeover defense
• Preventive measures
• Active measures
Preventive measures are designed to reduce the
likelihood of a financially successful hostile
takeover
Active measures are employed after a hostile bid
has been attempted
8. Precautionary Measures
• Having a Early Warning Systems
Monitoring Shareholding
Trading Patterns
• Poison Pills
• Flip-over
• Flip-in
• Back-End Plans
• Voting Plans
• Shadow pill
• Chewable pill
• Corporate Charter Amendments
• Staggered terms of the board of directors
• Supermajority provisions
• Fair price provisions
• Dual capitalization
• Golden Parachutes
9. Having Early Warning System
• Analyze distribution of share ownership
of the company
• Monitor the trading of its shares (trading
patterns)
11. Staggered Board Amendments
• It is a type of defense where the terms of the
board of directors so that only a few such as
one-third of the directors may be elected
during any one given year
• It requires share holder approval before they
can be implemented
• Classified directors cannot be removed before
their term expires
12. Supermajority Provisions
• These provisions usually require that at least 80%
of voting shareholders approve of the takeover, as
opposed to a simple 51% majority. Such a
requirement can make it nearly impossible for an
acquirer to obtain enough votes approving the
takeover.
13. Fair Price Provisions
• It is a modification of corporations'
charter that requires the acquirer to pay
minority shareholders at least a fair
market price for the company’s stock.
• -it is usually in terms of company’s P/E
ratio
• -it’s a weak takeover defense
14. Dual Capitalization
Restructuring of equity into two
classes of stock with different
voting rights
E.g..
Ford Motors
Berkshire Hathaway
Concept of Golden Shares
15. Poison Pills
• A strategy used by corporations to discourage hostile takeovers.
With a poison pill, the target company attempts to make its stock less
attractive to the acquirer.
• First invented by famous Takeover Lawyer Martin Lipton in 1982 to defend
El Paso Electric against General American Oil
• Actual Poison Pill was used in Brown Forman Vs. Lenox Takeover in 1983
• There are different types of poison pills
Flip-Over Shadow pill
Flip-In Chewable pill
Back-End Plans BankMail pill
Voting Plans
16. Flip-in
A "flip-in" allows existing shareholders (except the
acquirer) to buy more shares at a discount.
Management offers shares to investors at a discount if
an acquirer merely purchases a certain percentage of the
company. The discount is not available to the acquirer, and
so it becomes extremely expensive for that acquirer to
complete the takeover. Experts estimate that it would cost
an unwanted bidder, on average, four to five times more to
“swallow” a poison pill in order to acquire a target
17. Flip-over
A "flip-over" allows stockholders to buy the
acquirer's shares at a discounted price after the merger
A ‘’flip-over’’ allows stockholders to buy the
acquirer’s shares at a discounted price after the
merger. The holders of common stock of a company
receive one right for each share held, bearing a set
expiration date and no voting power. In the event of an
unwelcome bid, the rights begin trading separately from
the shares.
18. Cont.…
If the bid is successful, all shareholders
except the acquirer can exercise the right to
purchase shares of the merged entity at
discount. For instance, the shareholders have
the right to purchase stock of the acquirer on a
2-for-1 basis in any subsequent merger. The
significant dilution in the shareholdings of the
acquirer makes the takeover expensive and
sometimes frustrates it. If the takeover bid is
abandoned, the company might redeem the
rights.
19. Back-End Plans
It is also known as note purchase rights plans. The first
plan was developed in 1984 . Under back-end plan
share the holder receive a right dividend which give
share holder ability to exchange this right along with the
share of stock for cash or senior securities that are
equal in value to a specific “back-end” price stipulated
by the issuer's board of directors.
The back-end plans are used to try to limit the
effectiveness of two tiered offer. In fact, the name back-
end refers to the back end of a two-tiered offer.
20. Voting Plans
This poison pill strategy is designed to dilute
the controlling power of the acquirer. Under this plan,
the target company issues a dividend of securities,
conferring special voting privileges to its stockholders.
For example, the target company might issue shares
that do not have special voting privileges at the
outset. When a potential hostile bid occurs, the
stockholders, other than the acquiring party, receive
super voting privileges. Alternately, the target
company's stockholders might receive securities with
voting rights that increase in value over period.
21. Cont..
Voting plans were first developed in
1985. They are designed to prevent any out
side entity from obtaining power of the company
. Under this plan the company issues a dividend
of preferred stock. If any outside entity acquires
a substantial percentage of the company’s
stock, holders of preferred stock become
entitled to super voting rights.
22. Shadow pill
A bidder cannot simply look at a target company
and conclude from the fact such a defense.
Targets may simply adopt a pill after a bid has
taken place
A company may also have a poison pill which is
not openly advertised
23. Chewable pill
These are pills that disappear, or are brought to
shareholders vote, if a company receives a
certain type of offer such as a certain price or
type of consideration
E.g. If Company A wants to take over Company
B it may have to pay minimum price set by the
Board of Company B else poison pill will be
triggered
24. Bank Mail Pills
Bank mail defense wherein the
bank of a target firm refuses financing
options to firms with takeover bids
thereby having the triple impact of
imposing financial restrictions upon the
acquirer, increasing transaction costs in
locating another financing option and
also buying time for the target company
to put more defenses in place.
26. Golden Parachutes
• Special lucrative compensation agreements that the
company provide to Top management
• it may be used both as a preventive measure and as
an active measure
• It is triggered by some predetermined ownership of
stock by an outside entity
• Silver Parachutes if it is given to most of the firms
employees
• E.g. Yahoo
27. Dawn raid
• A ‘dawn raid’, i.e., a sudden entry into the stock
market by the predator at a price above the previous
market level, with a view to acquiring a major stake in
a short space of time, in that it may lead to a further
takeover offer a few days later
28. Active Antitakeover Defenses
• Greenmail
• White Knight
• White squire
• Pac-man Defense
• Crown Jewel Defense
• Litigation
• People Mail
• Jonestown Defense
• Standstill agreements
• Capital Structure Changes
29. Greenmail
• It refers to the payment of a substantial premium for a
significant shareholder’s stock in return for the
stockholder’s agreement that he or she will not initiate a
bid for control of the company
E.g..
• First reported instance of greenmail occurred in July 1979
• Carl Icahn bought 9.9% of Saxon Industries stock for 7.21$
per share
• Saxon was forced to Repurchase its own share at 10.5 $
per share on February 13, 1980
• New Career avenue was born “Corporate Raider”
Green mail has mostly decreased due to Capital gain tax
imposed on the gains derived from such stakes.
31. White Knights
• It is the company that is more favorable compared to
the Hostile company (Dark Knight)
• Eg. for White Knight
• In 1998 Allied Signal Corp. launched a Proxy Fight 10
Billion $ Takeover bid for AMP. Inc. whose value was
just under 6.5 Billion $.[
• AMP Inc. found a “White Knight” in Tyco in more
Favorable terms of stock for stock swap of 11.3 Billion
32. • Grey Knight is an acquiring company that enters a bid
for a hostile takeover in addition to the target firm and
first bidder, perceived as more favorable than the
black knight (unfriendly bidder), but less favorable
than the white knight (friendly bidder).
• Yellow Knight: A company that was once making a
takeover attempt but ends up discussing a merger
with the target company.
• Lady Macbeth Strategy
A corporate-takeover strategy with which a third party
poses as a white knight to gain trust, but then turns
around and joins with unfriendly bidders.
33. Tale of 3 Knights
• High-profile international takeover drama
surrounding Yahoo! — software giant Microsoft at
first tried to sell itself as a friendly bidder.
However, Yahoo found the offer a gross
undervaluation of their company, which sent the
ball back into Microsoft’s court.
• Search engine behemoth Google and AOL
appeared as white knights to help Yahoo brush off
Microsoft, if it were to become a black knight as it
has reportedly threatened to go ahead with a
hostile takeover.
• Rupert Murdoch led News Corp was also keen in
Yahoo! which makes it the Grey knight.
• The situation could get real interesting if black
34. White Squire Defense
• A White Squire is a firm that consents to purchase a
large block of the target company’s stock
• The White Squire is typically not interested in
acquiring management control of the target but either
as an investment or representation in board of the
target company
Advantage to Target Company
Large amount of Stock will be placed in hands of an
investor which may not be tendered to hostile bidder
E.g.. Technically Reliance is White Squire to Oberoi
Hotels against EIH
35. Pac-Man Defense
“Best Defense is a Good Offence”
It occurs when the Target makes an offer to buy
the Hostile company in response to Hostile bid for
the Target
Eg.
Martin Marietta Corporation made an offer to buy
Bendix following Bendix’s unwanted $43 tender
offer for Martin Marietta in 1962
36. Crown Jewel Defense
• It is a strategy in which the target company sells
off its most attractive assets to a friendly third
party or spin off the valuable assets in a
separate entity
• unfriendly bidder is less attracted to the
company assets
37. Standstill Agreement
“ A contract that stalls or stops the process of a hostile
takeover. The target firm either offers to repurchase the shares
held by the hostile bidder, usually at a large premium, or asks
the bidder to limit its holdings. This act will stop the current
attack and give the company time to take preventative
measures against future takeovers.”
38. Capital Structure Changes
A target corporation may initiate various changes
in its capital structure in an attempt to ward off a
hostile bidder. These defensive capital structure
changes are used in four main ways:
• Recapitalize.
• Assume more debt:
a. Bonds
b. Bank loan
39. • Issue more shares:
a. General Issue
b. White Squire
c. Employee stock action plan
• Buy back Shares:
a. Self tender
b. Open market tender
c. Targeted shares repurchase
40. People Mail
• It is kind of Black Mail where the top Management
threatens to resign En-mass in case the Hostile
takeover takes over the company
41. Jonestown Defense
• Jonestown defense is an extreme corporation
defense against hostile takeovers. In this
strategy, the target firm engages in tactics that
might threaten the firm’s existence to thwart an
imposing acquirer’s bids. This is also known as
a “suicide pill”, and is an extreme version of the
poison pill.