Defensive merger

From CNM Wiki
Jump to: navigation, search

Defensive merger is a merger that occurs when one company acquires another to help ward off a hostile merger attempt.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Defensive merger. Occurs when one company acquires another to help ward off a hostile merger attempt.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Defensive mergers. Mergers designed to make a company less vulnerable to a takeover.

Related concepts

Related lectures