Defensive merger
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
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
