Senior M&A Partner Frank Aquila and associate Catherine Yuh co-authored an article for Bloomberg Law on the resurgence of hostile M&A activity due to market volatility, and new tactics activist investors are leveraging to pressure target companies. The authors discuss the risks companies and boards can face when responding to unsolicited bids, and best practices for both avoiding and responding to hostile offers.
“Companies that develop a preparedness strategy and readiness plan to address unsolicited M&A activity are best positioned to protect their long-term business goals and maximize shareholder value,” the authors write. “A sophisticated strategy will find the right balance between permitting a takeover that delivers fair value and holding out against a proposal that conflicts with shareholders’ best interests.”
Read: “Hostile M&A Activity Could Spur Comeback of Takeover Defenses”