Lancelock Inc. buys a less accomplished firm by directly signing a deal with the target firm's shareholders. The move is vehemently opposed by the board of directors and the top management of the target firm. This is an example of a _____.
A) creeping acquisition
B) hostile takeover
C) bootstrap acquisition
D) lobster trap

Question

Quizplus · Accepted Answer

A hostile takeover occurs when a company is acquired by another company against the wishes of the target company's board of directors and management, typically by directly approaching the shareholders.