Mergers and acquisitions are complex business transactions that can puzzle even the most astute businessperson or entrepreneur. But, for many companies in Louisiana, these types of transactions can be the best way to expand into new territory or diversify holdings. Unfortunately, sometimes two businesses that might merge, or one that might acquire another, don't see eye-to-eye about the deal. That can result in what is termed a "hostile acquisition" under business law.
What is a hostile acquisition? Well, put simply, it is one company acquiring a new business that, at least at the management level, doesn't want to be acquired. When that happens, the acquiring business is usually left with two options. The first is to make an offer, known as a "tender offer," that would acquire the business in question for more than its share-value says it is worth. If this tender offer is rejected by the company's management, the offer could be taken directly to the shareholders.