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Hostile takeovers - motåtgärdernas påverkan på aktieägarnas aktievärde

by Jansson, Andreas; Häägg, Mikael

Abstract (Summary)
Acquisition of a company is a phenomena that has increased during the latest years in Sweden. Hostile takeovers is a type of acquisitions that are made in a hostile way. The controll of the company is moved from one group of stockholders to another. One way of acqire another company is to buy it. There are three types of procedures of buying a company. Fusion is one, when two companies of the same size becomes one. The fusion precede with negotiations between the companies and the stockholders. The acquires that are made in a hostile way is callaed hostile takeover. These types of acusitions are more common in USA and in Great Britain than in the rest of Europe. In the most common case of hostile takeovers, the acqusitior gives a bid to the stockholders to make them sell their stocks.The acquisitiors intrest is to take over the power of the company, whithout dealing with the board of the company. The aim of the takeover can vary. Maybe the acquisitors want to expand their portfolio of products, reach out over a new market theratory, or get into contact with new customers. The target company for a hostile takeover is often a company that are underestimated and had faild to maximise their profit. A hostile takeover often results in a big change in the company’s organisation to make a better resultWhen a hostile takeover arise there are several defences that the board or the management can take. These defences are built upon two diffrent approaches. One of them is called the ”Management entrenchment hypothesis”, the board is acting more in their own interest than in the stockholders interests. The other approach is to achieve the stockholders interests. When we define the stockholders interests we mean that way that the stockholders will get the highest possible profit in the specific case.Our question at issue is in which way the different defences relates to the stockholders interests. The purpose is to describe the relation in an easy way and to make the stockholders aware of that there is a conflict betwwen the interests of the management and the stockholders. During the writing of this article we have studied and used litterature, articles in science and research and the Internet. We have also perform some interviews.Our conclusion is that we have to seperate the meaning of stockholders interest, depending on wheter it is a short-term interest, or wheter it is a long-term interest. Some defences results in an increase of value in short term, and some in the long-term. also that some of the defences can not been used at all to achieve the stockholders interests. In one of our interviews, Gunnar Ek at Aktiesparana expreses his thought that there is cases in which the board is acting more in their own interest than in the stockholders interests.In this cases we mean that the ”Management entrenchment hypothesis” is used. We also predict that the phenomena hostile takeovers will continue to increase in Sweden
Bibliographical Information:

Advisor:

School:Högskolan i Gävle

School Location:Sweden

Source Type:Master's Thesis

Keywords:

ISBN:

Date of Publication:02/06/2007

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