BAYFIELD CONTRIBUTES THE LESSONS LEARNED FROM DOZENS OF HIGH-PROFILE AND HISTORIC HOSTILE BIDS TO OUR CLIENTS.
Hostile Takeover Bids
A takeover bid can be a quick way to acquire a target company without management consent or a shareholder vote. Once a bid is widely expected or commenced, many long-time shareholders sell their shares in the market where they are picked up by arbitrage funds.
Messaging for a hostile bidder has to emphasize full-value and the certainty of the consideration being offered. Tendering shareholders have a chance to mitigate their exposure to the ongoing operational, exploration or financial risk of the target company.
Conversely, the target of a hostile bid must demonstrate the inadequacy of the bid and convince shareholders that superior alternatives may be available – or that the company is better off remaining independent.
Bayfield Strategy can help you develop your messaging, place takeover bid advertisements, assist in crafting arguments to shareholders in a bid or directors’ circular, prepare press releases, create a bid-specific website, and manage the news media.