Commentary

183 Spoiling tactics by the target company

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

183 Spoiling tactics by the target company

| Commentary

(h) Response by target company

183 Spoiling tactics by the target company

The approach by the offeror may not be exactly welcome news for the board of the target company, who may consider the bid hostile. Consequently, it may be tempting for the target board to attempt to frustrate the offer by employing so-called ‘poison pill’ defences to make the target less attractive or more expensive to the offeror. The City Code on Takeovers and Mergers attempts to prevent this by prohibiting an offeree board during the course of an offer, or even before the date of the offer if the

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