What is a hostile takeover and what is it for?

We tell you about what is in exchange for hate and a nice way of working is how many types there are and what are their differences.Here are all the keys to your offer.

Key to Grandpa: What it means and how many types there are

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The failure of BBVA's takeover bid for BBRO Sabadell this Thursday, October 16, marks a change at the Spanish bank and will have immediate consequences on financial markets and the perception of the sector.After weeks of controversy and speculation, BBVA received only 25.47% of the voting rights, below the 30% limit based on the minimum success and away from Carlos Torres Vila, the president, which is guaranteed to reach.What is a hostile takeover?What is a hostile takeover?Its consequences?The difference between a soft offer and a friendly takeover.

What is a hostile takeover?

A bid is an attempt to buy a company without the approval of the target company's board of directors of the directors of the company's directors.In other words, the company sends bids directly to the group that has to buy their shares, even if the company controls it.

What is a hostile takeover for?

The main objective of a hostile takeover is to manage the company effectively, even if the management does not agree.The motives behind this type of action can be different:

- Strategic control.The acquiring company seeks to obtain a majority of the voting rights to manage the company, change its management or modify its strategy.

- Reorganization and value improvement.Sometimes the acquiring company believes that the management of the target company is weak and that with its guidance it is possible to improve results and create more value for the shareholders.

- Decreased competition.Some competitors seek to exploit direct competitors to strengthen the purchasing company's position in the market.

- Access to specific assets or markets.The acquisition may be aimed at leveraging the target company's technology, customers, patents, strategic resources or geographic presence.

What results are there?

Here you can see the consequences.They can be positive or negative and affect, among others, shareholders, companies and markets.

Effects on shareholders

Positives. Shareholders can receive a buyout premium, i.e. at a price higher than the market value of their shares, which means an immediate profit.

Negative. The uncertainty created by the transaction could have a negative impact on the share price, especially if the hostile takeover fails or drags on.

Impact on employees

There is a possibility of creating unemployment at work and fear of employees, due to the possibility of layoffs, changes or changes in corporate culture.Productivity may decline as management and employees adjust to operational uncertainty and stress.

Effects on markets

Taking over the table can create a dynamic structure in the financial markets and influential companies in the same industry.It can also change the competitive structure, as the acquiring company may seek to consolidate its position, access strategic resources, or seek to eliminate competitors.

The difference between obsession

In a hostile takeover, the acquiring company approaches shareholders offering to buy their shares outright, ignoring the refusal or reluctance of the target company's management.

Doing this operation is considered strong because the management team does not take part in the negotiations to protect it, which sells its accessories, that is, the best buyer.

A friendly transition is carried out with the cooperation and consent of the target company's management, with the consent of enemies, without the consent of the board of directors and in most cases its active opposition is implemented.

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|Features |Hostile Takeover |Friendly Takeover Offer |

|Consent of the Board of Directors |Not required, the offer will go directly to the shareholders |Yes, it has been negotiated and agreed with the management of the company |

|Strategy |May meet resistance, rejection, use of legal and defensive tactics |Developed through cooperation and negotiation before |

|Time and difficulty |Usually longer and more due to resistance |generally faster and easier |

|People's opinionCan be seen as aggressive or hostileCan be seen as strategic and adjustable

|Example |Doal company launch the offer directly to the end user Najan Back RKIh |buying company and buying company by mesking terms before going to market |

- Banco Sabadell