subject: Legal Translation Workers Expect Increase In Corporate Takeovers [print this page] With economic data suggesting that we have finally entered into a very slow economic recovery, some companies with large cash reserves are ready to start acquiring other companies. However, many would-be acquisitions will likely hold on for better offers. Thats why Wall Street believes that hostile takeovers will be back in full swing.
According to some Legal Translation workers, vulnerable companies are often in the state of denial. Their stock prices have taken serious hits but board members are often in the state of denial and think their companies are worth more than their current market value. As a result, even when a fair offer with an attractive premium is made, the deal is often refused.
In a recent example, Kraft offered $16.7 billion for Cadbury which represents an offer 31-percent above its market value. But when Cadbury laughed at the offer, Kraft lowered its bid. Cadbury executives insist that the offer is not reflective of the true value of the company.
One benefit that takeover companies have is a trend in reduced takeover defenses. For instance, one Boston Translation worker added that staggered boards appear to be a thing of the past. With a staggered board, only a few members come up for reelection each year. As a result, takeover firms are often prevented from staffing the board with sympathizers. Today, a minority of corporations have staggered boards.
In addition, there has been a strong trend against multiyear poison pills. Multiyear poison pills were designed to deter takeovers by giving management friendly investors the right to buy a large number of shares, thus diluting the hostile bidders stake.
by: themarketinganalysts
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