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Defence strategies against hostile takeover

Defence strategies against hostile takeover

Preparation of a defence strategy in the event of a hostile tender offer.

Preparation of a defence strategy against hostile bids.

In a situation where a potential investor plans a hostile takeover by announcing an unsolicited public tender offer for shares of a company listed on the Warsaw Stock Exchange, an appropriate defence strategy is a key factor influencing the company's future.

High volatility of stock prices, scattered shareholdings, persistently low share prices and a significant discrepancy between the fundamental value and the stock capitalisation – those are the factors that may attract potential investors. Often, they do not want to negotiate deals directly with shareholders but decide to act by surprise instead. In the event of a tender offer announcement, inexperience and fear may tempt the management of the company, to which the tender offer is announced, to make careless decisions, which in turn may be very expensive and have a negative impact on the company's value, and even harm the current shareholders (potential sellers). Successful counteracting a hostile takeover requires experience gained in similar transactions and the adoption of tactics appropriate to the given circumstances. That is why shareholders usually appreciate when the management appoints an independent expert in such a challenging situation.

KPMG provides services supporting the management board and shareholders of the company when defence against hostile takeover is required. In cooperation with an experienced law firm and the client’s investor relations team, we offer comprehensive services including planning and implementing appropriate actions aimed at preventing a hostile takeover and protecting the company's value.

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