Hostile Takeovers/Activist Actions
Today’s listed companies are experiencing a growing need for high-capital-efficiency management, and when market valuation is inadequate in regard to capital efficiency, companies are vulnerable to pressure from activists and others who acquire shares and then push for substantial shareholder rewards, business restructuring or the like. In addition, in some cases, companies may fall victim to hostile buyout proposals not based on agreement with their current management.
Our firm provides strategic advice tailored to each case, stressing the importance of dialogue with shareholders and supporting the introduction of takeover defense mechanisms, in consideration of the continuous nature of the shareholder-management relationship, the reasonableness of the shareholder proposal, and the risks to management.