Part One and Two of Agrovate’s Board

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Part One Is this a hostile takeover? Yes this was a hostile takeover according to the text a hostile takeover is the acquisition of a formerly independent business where the acquired business resists the union (McAdams 876). AgroVate didn’t want Bijoux or Pearson the president taking over their company. They felt if he were to takeover that he would fire everyone who worked for AgroVate and bring in his own employees. The Maxxo brothers apart of the board of directors didn’t want that for his loyal employees. AgroVate refused Pearson’s offer and secretly conspired with Stopper a larger company about merging with them. Can the AgroVate board legally adopt defensive measures against Bijoux? I am not sure but I think AgroVate can adopt a defensive measure against Bijoux. For AgroVate to be able to adopt a defensive measure the board first has to have reasonable grounds for believing that a danger to corporate effectiveness existed. I believe one did exist the Maxxo Brothers knew that if Bijoux took over the board and the Maxxo Brothers would be out of a job. There would no longer be a corporate effectiveness because Pearson would replace AgroVates with his own corporate managers. AgroVate is not just a company but a means of living for many people without that job a lot of people will be struggling to make a living. The defensive response made by the AgroVate Company was reasonable in relation to the threat posed. The Maxxo Brothers were looking out for their employee’s people have been dedicated and loyal to them for years making sure that they will be ok in the long run. That would be making a deal with Stopper over accepting the tender offer from Bijoux. Unfortunately the case didn’t mention if other stakeholders were interested in a return on their investment. Two types of mergers are mentioned here. Define each type. The two mergers I

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