Originally Posted by certifiedfunds
Warp - that's what the "hostile" means in "hostile takeover". They're buying a company that isn't for sale....or is for sale but not at the price being tendered. They buy what they can. BOD recommends shareholders not accept. Offer goes up. Rinse and repeat.
Along the way they often acquire enough shares to replace the BOD and move the transaction in their favor...(BOD recommends shareholders accept the offer). 51% isn't required to have a controlling interest in these situations. It depends how many shares other interests hold as one voting block. A relatively small percentage, maybe 5 or 10% held by one interest can wield enormous influence. Once you get enough to start replacing board members, you have effectively taken over a company. From that point, you might choose to acquire it outright, or not.
There is, of course, potentially a lot more than that to it, even.
It can get complicated very quickly.
How easily is 5% interest going to start replacing board members though? I mean...really?