It was later repealed and was replaced by SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (the вЂњ Takeover CodeвЂќ).Д¬ommonly known as anti-takeover amendments. Much later SEBI enacted SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 to regulate the acquisitions in India. The hostile takeover was saved by the Government and it was later mediated where Swaraj Paul agreed to sell back the shares at a mutually agreed price. The Government of India capped the portfolio investment by NRI at 5%. Nanda, Bharat Ram, and a few others, businesses who were concerned about a hostile takeover. However, a request was made to the Government of India by a group of FICCI including J.R.D. Whereas, the Nanda family and Shri Ram family, the controlling shareholders, were left with less than 5% and 10% of the shareholding in their respective companies. He acquired 13% and 7.5% of shares in DCM and Escorts respectively. The first attempt dates back to the pre-liberalized era where an English businessman Swaraj Paul scared the businessmen in India. India has seen only handfuls of hostile takeovers or even hostile takeover attempts.

A hostile takeover can also be affected without intervening in the promotersвЂ™ shareholding. without the willingness of remaining promoters holding 20% in A ltd. now has 51% of the shareholding in A ltd. Say, Z ltd purchases 15% of the promoter group, 5% of the public shareholding, and buys out the rest 31% from others entering into a Share Purchase Agreement. Let us take an example to understand this better: вЂњA ltdвЂќ has the following shareholding pattern: promoter group (35%) public (35%) financial institute 1 (5%) B ltd (5%) C ltd.

In a hostile takeover, the target company is been acquired or attempted to be acquired. It is important to consult a business attorney with experience in mergers and acquisitions so that you are aware of what protections the law provides to you and your company and what you can do within the legal system to help fend off this unwanted buyout.According to BlackвЂ™s Law Dictionary, a hostile takeover is defined as вЂњA takeover that is resisted by the target corporationвЂ™s board of directors.вЂќ In simple words, when a company wishes to buy the target company and without the willingness of the target company, it is called a hostile takeover. Your hostile buyer and your shareholders will both be carefully scrutinizing every action that you take, so those actions must be bold and decisive steps to show the acquiring company they are in for a long, difficult battle. When an attempt at a hostile takeover is about to be made, the first steps the target company takes to prevent the success of the attempt are crucial. Should I Consult a Business Attorney if I Am at Risk of a Hostile Takeover? This strategy should reach to the legal activities, investment banking, PR, and investigative activities of your company. Create a strategy for fending off hostile takeovers вЂ“ A strategy to counteract an attempt of a hostile takeover is important to have so that it can be enacted at the first sign of a takeover attempt.This means being on the lookout for any other businesses that have shown interest in acquiring you, as well as monitoring how your stocks are being bought up so as to see if there is one buyer purchasing unusually large volumes of your companyвЂ™s shares.

Develop a monitoring system вЂ“ One of the keys to surviving a hostile takeover is to see it coming a mile away and not be blind to impending threats.

There areВ a number ofВ steps that a business owner can take to help ensure that her business and ownership survive a hostile takeover attempt: What Steps Can I Take to Avoid a Hostile Takeover of My Business? After the acquiring company has successfully conducted the hostile takeover of the target company, it liquidates the target company by selling of all of its equipment and land, effectively destroying the target company. This means that the acquiring company will keep the target company doing the same thing it was doing before it was acquired, except now the target company will be under new ownership and the acquiring company will be reaping the rewards of the target company.ДЄnother way that a company can enact a hostile takeover is through a 'corporate raid.' What this means is that the acquiring company looks to forcibly buy up a company who has a low stock price because it is not doing well, but it has valuable tangible assets, such as equipment or land. Most of the time one company wishes to purchase another company, even forcibly, because the target company is highly profitable. What Can Be the Result of a Hostile Takeover?

Should I Consult a Business Attorney if I Am at Risk of a Hostile Takeover?.

What Steps Can I Take to Avoid a Hostile Takeover of My Business?.

What Can Be the Result of a Hostile Takeover?.

What is a hostile takeover