This research report delves into one British company in order to see how it can be protected from takeover. Distillers by Guiness and Argyle are cases considered. This fourteen page paper has seven sources listed in the bibliography.
Name of Research Paper File: TS14_TEtakeov.rtf
Unformatted Sample Text from the Research Paper:
of mergers and acquisitions has been seen to increase dramatically over the last decade. This has not been as phenomena isolated only to the UK, but has been seen in
the rest of the Anglo-American economies, where the type of action had been accepted for a long time as well as the other economy structured, such as the Germanic model,
where this is seen as less socially acceptable. However, the predicted benefits of economies of scope and scale, as well as the ability to become a stringer organisations may not
always be the driving points behind a acquisitions. Hostile take-overs are also becoming more popular. In these instances it may be claimed
that the companies best interests would be served by remaining independent, yet the attempt at take over may still go ahead. When we consider the legal position of the company
there is little protection provided by UK law when compared to other countries. There are some measures that can be taken to try to protect the company, however, even
in considering the limited measures that are possible, such as the defence documents that can be issued, to try to prevent the sale of shares to the acquiring company, it
is shown that this has little effect (Cooke et al, 1998). In recent takeover bids, such as LloydsTSB bank and Abbey National, we can see that the company may
issues a document. In this there is an attempt to prevent the sale of shares. There will be a letter or a plea for the board of directors, and then
an outline of reasons why the sale should not be made. However, where a company is under performing, or the shareholders are