Notable Hostile Takeover Cases

Hostile takeovers can be high-stakes affair that leaves a lasting impression on the corporate landscape. They involve an acquirer attempting to take over the target firm against the wishes of the management and board. Hostile takeovers, despite their drama and public nature aren’t as common as they used to be.

In the 1980s, there were 160 unassisted hostile takeover offers made and board members feared of “corporate raiders” like Carl Icahn. These incidents were widely covered and often resulted in lengthy, mud-slinging talks.

One notable example is the acquisition of Cadbury in 2009 by Kraft Foods Inc. It was the largest hostile acquisition in the history of the company, and workers in the UK were outraged at the possibility of losing their jobs. Cadbury’s management refused the offer, claiming it was a low-ball bid. Kraft increased its offer and eventually acquired the confectionery giant.

Another noteworthy case is the acquisition by KKR of Airgas in 2010. This was a hostile buyout of an industrial gas provider and represented one of the largest leveraged buyouts of the time. The media frenzy grew and the deal ended up in a long legal dispute.

Elon Musk’s acquisition of Twitter in 2022 is one of the more recent examples. This was a hostile takeover that involved the use of the poison pill defense and resulted in tumultuous negotiations and major policy changes after the acquisition. This was a case of an acquisition strategy that was able to weather the hostile takeover battle showing how important it is for a potential company to have a well-planned strategy to block unwanted offers.

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