Define the tactics of shareholders used after the bid, Financial Management

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After the bid

Tactics can be undertaken by directors to ensure that their shareholders don't accept the bid, if that is what they desire.

Reject

Shareholders can reject the bid within 14 days of the offer.

Good

forecasts

Forecast better profits to raise share price thus making it more expensive for predator company. Though the forecast has to be achievable or it could have an adverse effect on management. Profit forecasts have to be endorsed by company's financial advisors.

White knight

Another company can be found who can make a bid for target company, which would be more acceptable to the shareholders ("white knight").

Give bad

publicity

Attacking predator company to give it a bad image, such as criticise their management style and products in the papers. However could be faced with liable charges if accusations are unfounded.

Competition

commission

Get government involved and show that takeover wouldn't be in the interests of the public.

Management

buyout

Management of the company can buy out their shareholders.

 


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