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THE BEST DEFENCE IS A GOOD OFFENSE?
Or what type of defence strategies can be applied in case of acquisition?
Natasa SZITA
This article offers a summary about which defence method can be used against an acquiring company in case of a takeover bid.
The paper first introduces that how one of the biggest Hungarian company's - Richter Gedeon Incorporated Company's - ownership structure has changed in
the past few months.
The article determines the definition of takeover, and presents the conflicts of interest between management and shareholders.
It then focuses on the regulation on takeover bids in the European Union and of course in Hungary. It also presents information concerning bids,
breakthrough and neutrality rule, optional arrangements and right to sell out and right to squeeze out.
The article examines the different defence strategies for example, poison pills, white knight, staggered board, or blowfish. After that it describes the
Hungarian noticement proceedings for monitoring investment coming outside the European Union.
Finally, in the summary the general findings of the paper are presented.
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