M&A Hostile Takeover Defense

Defending against an unsolicited offer requires both expertise, as well as impeccable judgment. Multiple financial advisors are often sought to ensure that one receives best possible advice and independent opinion. Responding to a hostile takeover bid requires planning and a proactive approach to defense. Amongst increasingly sophisticated attack devices being used by hostile activists are: (a) proposing a proxy resolution for creation of a special committee of independent directors to undertake a strategic review for the purpose of "maximizing shareholder value"; (b) conducting proxy fights to get board representation; (c) convincing traditional institutional investors to support the activists' program; (d) using stock loans, options and other devices to increase voting power beyond the activists' economic equity investment; and (e) using sophisticated public relations to advance the activists' arguments. It is essential to be able to mount a defense quickly and to be flexible in responding to changing tactics. To forestall an attack, companies should understand their defense options, and consider strategic and governance issues sensibly within the special context of their needs and circumstances. This playbook built around years of real-world practitioner work on Wall Street is organized as a series of thoughtful information packed slides. It prepares the senior executive for M&A defense in the event of a hostile takeover bid.CONTENTS-Hostile Approaches-Defense Preparation-Tactical Defense-Other Options-Timeline & Actions-Poison Pills and Poison Pill Mechanics-Case Studies in M&A Defense-Board of Directors Duties-Practical Workplan

Defending against an unsolicited offer requires both expertise, as well as impeccable judgment. Multiple financial advisors are often sought to ensure that one receives best possible advice and independent opinion. Responding to a hostile takeover bid requires planning and a proactive approach to defense. Amongst increasingly sophisticated attack devices being used by hostile activists are: (a) proposing a proxy resolution for creation of a special committee of independent directors to undertake a strategic review for the purpose of "maximizing shareholder value"; (b) conducting proxy fights to get board representation; (c) convincing traditional institutional investors to support the activists' program; (d) using stock loans, options and other devices to increase voting power beyond the activists' economic equity investment; and (e) using sophisticated public relations to advance the activists' arguments. It is essential to be able to mount a defense quickly and to be flexible in responding to changing tactics. To forestall an attack, companies should understand their defense options, and consider strategic and governance issues sensibly within the special context of their needs and circumstances. This playbook built around years of real-world practitioner work on Wall Street is organized as a series of thoughtful information packed slides. It prepares the senior executive for M&A defense in the event of a hostile takeover bid.CONTENTS-Hostile Approaches-Defense Preparation-Tactical Defense-Other Options-Timeline & Actions-Poison Pills and Poison Pill Mechanics-Case Studies in M&A Defense-Board of Directors Duties-Practical Workplan