Global Analysis Of Hostile Takeovers & The Measures For Shielding It: With Special Reference To India
Rishab R C, Symbiosis Law School
ABSTRACT
Hostile takeovers have been a prominent tool in creating inorganic synergies and growth in the corporate world. As the word ‘Hostile’ resembles force, the acquisition under a hostile takeover is done against the will of the target company. These takeovers are regulated with different types of regulations all over the world which are framed considering the environment and the nature of the business economy of the country. With time, there have been several developments in the regulating bodies as well as the rule have also been framed in a more sophisticated manner to protect the interest of the promoters, the shareholders, and the company as a whole without having much impact on the corporate ecosystem.
Although there have been several developments in the field of regulating hostile takeovers, there haven’t been many successful hostile takeovers in India. The paper presents an analysis of the regulatory and statutory bodies that are responsible and authorized to look over hostile takeovers in various other countries along with India and at the same time, it also highlights the key issues involved in such acquisitions. In addition to it, the paper also takes into consideration the impact of such takeovers and discusses the defenses against them both at the Indian and global levels with the help of various case studies and statistics.
Keywords: Hostile Takeovers, Securities and Exchange Board of India, Competition Commission of India, Substantial Acquisition of Shares, and takeover (SAST) Regulations, Creeping acquisitions.
