Hostile Takeover

Hostile Takeover refers to the acquisition of one company (the target) by another (the acquirer) without the consent or approval of the target company’s management or board of directors. In a hostile takeover, the acquiring company bypasses the target's management and directly approaches shareholders, often by making a tender offer (buying shares at a premium price) or through a proxy fight (attempting to replace the board).

Example: Takeover of Hexaware Technologies by Baring Private Equity Asia in 2018. Baring initiated a hostile takeover by making a tender offer directly to shareholders, as the management of Hexaware initially opposed the deal. However, the takeover eventually succeeded, as the shareholders approved the acquisition.