Process Costing Method by Aveda

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In business, a takeover is the purchase of one company (the target) by another (the acquirer, or bidder). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company. Contents [hide] * 1 Types of takeover * 1.1 Friendly takeovers * 1.2 Hostile takeovers * 1.3 Reverse takeovers * 1.4 Backflip takeovers * 2 Financing a takeover * 2.1 Funding * 2.2 Loan note alternatives * 2.3 All share deals * 3 Mechanics * 3.1 In the United Kingdom * 4 Strategies * 5 Pros and cons of takeover * 6 Occurrence * 7 Tactics against hostile takeover * 8 See also * 9 References * 10 External links | [edit] Types of takeover [edit] 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. [edit] Hostile takeovers A "hostile takeover" allows a suitor to take over a target company whose management is unwilling to agree to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects the offer, but the
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