Invitations To Sell Shares And Cases Of Hostile Takeovers

Abstract

The paper focuses on invitations to sell shares and their role in causing a hostile takeover of a company. Specyfically the paper aims to analyze invitations to sell shares on the Warsaw Stock Exchange between 2000-2012 in order to identify enterprises acquired through  hostile takeover. Raising objections to the offer by a board or taking defensive actions are the essential criteria which revealed from 397 cases of invitations, seven cases of hostile takeovers. In all seven cases the price offered was perceived by a board as being too low and unreflective of the value of the company. In six cases investors did not respond to the offer but in one case the offer  was accepted.

It would be advisable to analyze the cases concerning the offered price and its impact on the success or failure of a hostile takeover.