Hostile takeovers may be a high-risk event that creates a lasting impression the corporate landscape. The acquirer attempts to take over the target company against the wishes and preferences of the board. Hostile takeovers, despite their drama and public nature are virtual data rooms not as common as they were in the past.

In the 1980s, there were a total of 160 hostile takeover bids. Board members were frightened by “corporate raiders” like Carl Icahn. These events were widely covered, leading to lengthy and mudslinging talks.

A notable example is the acquisition of Cadbury in 2009 by Kraft Foods Inc. This was the largest hostile takeover in history at the time, and caused outrage among UK workers who were worried about losing their jobs to foreign ownership. Cadbury’s management was against the offer as it was an unqualified bid. Kraft increased its offer and eventually acquired the confectionary giant.

Another notable example is the acquisition by KKR of Airgas in 2010. This was a hostile purchase of an industrial gas provider and was one of the largest leveraged buyouts of the past. The media frenzy escalated, and the deal ended up in a long legal dispute.

Elon Musk’s acquisition of Twitter in 2022 is one of the more recent examples. This was an unpopular takeover that required the use of an anti-poison pill defense that resulted in tense negotiations and sweeping policy changes following the acquisition. This is an example of how an acquisition that was strategic was able to outlast the hostile takeover battle. It illustrates how important it is to have a well developed strategy to resist unwanted offers.