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Hostile takeover is the acquisition of one
company by another that is accomplished by
going directly to the companies shareholders
or fighting to replace management to get the
acquisition approved.
Hostile takeover is defined as a "type
of corporate takeover which is carried
out against the wishes of the board of
the target company -Smith
 Tender offer : Is a public bid for a huge
amount of the target's stock that is set at a
fixed price.
 Proxy fight : The purchaser doesn't make
any attempt to buy the stock. The
interested buyers will try to convince the
shareholder to vote out the current board of
directors or management.
1. Capable of generating more
profit in the future.
2. To gain control over the shares.
Advantages :
1. Increase shareholder value.
2. Increase companies worth.
3. Shareholders to recognise the real value of
their investment.
4. Increase wealth and productivity.
Disadvantages :
1. Employees are laid off from work.
2. Burden companies with debt loads.
 Kantian Ethics - Immanuel kant
Kant asserted that a moral action is performed
out of a sense of duty. Support only if intention
is upright.
 Rawls Egalitarian Theory of Justice - John
Rawls
Every individual has an equal right to the most
extensive liberties of all people.
 Libertarianism of John Locke -
Individuals are by nature free and equal.
He asserted that people have rights such
as:right to life, liberty and property.
 Virtue Ethics of Aristotle -
Theory emphasis on the moral character of
an individual. It focuses on the Virtue or
values of a person rather than his or her
duties.
THANK YOU

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Ethical issues IN HOSTILE TAKEOVER

  • 1.
  • 2. Hostile takeover is the acquisition of one company by another that is accomplished by going directly to the companies shareholders or fighting to replace management to get the acquisition approved.
  • 3. Hostile takeover is defined as a "type of corporate takeover which is carried out against the wishes of the board of the target company -Smith
  • 4.  Tender offer : Is a public bid for a huge amount of the target's stock that is set at a fixed price.  Proxy fight : The purchaser doesn't make any attempt to buy the stock. The interested buyers will try to convince the shareholder to vote out the current board of directors or management.
  • 5. 1. Capable of generating more profit in the future. 2. To gain control over the shares.
  • 6. Advantages : 1. Increase shareholder value. 2. Increase companies worth. 3. Shareholders to recognise the real value of their investment. 4. Increase wealth and productivity. Disadvantages : 1. Employees are laid off from work. 2. Burden companies with debt loads.
  • 7.  Kantian Ethics - Immanuel kant Kant asserted that a moral action is performed out of a sense of duty. Support only if intention is upright.  Rawls Egalitarian Theory of Justice - John Rawls Every individual has an equal right to the most extensive liberties of all people.
  • 8.  Libertarianism of John Locke - Individuals are by nature free and equal. He asserted that people have rights such as:right to life, liberty and property.  Virtue Ethics of Aristotle - Theory emphasis on the moral character of an individual. It focuses on the Virtue or values of a person rather than his or her duties.