hostile takeover: meaning, definition, pronunciation and examples
C1Formal; Business/Finance
Quick answer
What does “hostile takeover” mean?
An acquisition of one company by another against the wishes of the target company's board of directors and management.
Audio
Pronunciation
Definition
Meaning and Definition
An acquisition of one company by another against the wishes of the target company's board of directors and management.
A forceful acquisition attempt, often involving direct appeals to shareholders, bypassing management. Can extend metaphorically to any unwanted, aggressive seizure of control in organizational or political contexts.
Dialectal Variation
British vs American Usage
Differences
Term and concept are identical in both varieties. Spelling differences follow national norms (e.g., 'defence' vs. 'defense' in related texts).
Connotations
Identically negative from the target's perspective, implying aggression. Seen as a normal, if aggressive, market mechanism.
Frequency
Equally common in both business/financial contexts.
Grammar
How to Use “hostile takeover” in a Sentence
[Company A] launched a hostile takeover of [Company B].[Company B] is vulnerable to a hostile takeover.The board resisted the hostile takeover by [Company A].Vocabulary
Collocations
Examples
Examples of “hostile takeover” in a Sentence
verb
British English
- The hedge fund sought to hostile takeover the undervalued firm.
- They are attempting to hostile takeover the board.
American English
- The conglomerate moved to hostile-takeover its smaller rival.
- Activists threatened to hostile takeover the company.
adverb
British English
- The company was acquired hostilely through a tender offer.
- They proceeded quite hostilely in their acquisition strategy.
American English
- The firm was taken over hostilely, bypassing management.
- He argued they had acted almost hostilely in their approach.
adjective
British English
- The hostile-takeover bid was announced this morning.
- They adopted hostile-takeover defence measures.
American English
- The hostile takeover attempt made headlines.
- A hostile takeover scenario seemed increasingly likely.
Usage
Meaning in Context
Business
The primary context. Refers to a specific corporate finance event.
Academic
Used in economics, finance, and business strategy papers.
Everyday
Rare; used metaphorically (e.g., 'The committee's hostile takeover of the project').
Technical
Precise legal and financial term with regulatory definitions (e.g., SEC rules, Takeover Code).
Vocabulary
Synonyms of “hostile takeover”
Strong
Neutral
Weak
Vocabulary
Antonyms of “hostile takeover”
Watch out
Common Mistakes When Using “hostile takeover”
- Using 'hostile' to describe any large merger (must be unwanted by the target's board).
- Misspelling as 'hostile take over' (should be hyphenated or solid as a compound noun).
- Confusing with 'leveraged buyout' (LBO), which is about financing, not necessarily hostility.
FAQ
Frequently Asked Questions
No, it is a legal, though aggressive, strategy governed by securities regulations and corporate law.
A merger is typically negotiated and agreed upon by both companies' managements. A hostile takeover is initiated against the wishes of the target's management.
Common defences include the 'poison pill' (rights plan), seeking a 'white knight' (friendly acquirer), litigation, or making the company less attractive (scorched earth).
It can be, as the acquiring company usually offers a premium over the current share price to entice shareholders to sell. However, outcomes vary.
An acquisition of one company by another against the wishes of the target company's board of directors and management.
Hostile takeover is usually formal; business/finance in register.
Hostile takeover: in British English it is pronounced /ˈhɒstaɪl ˈteɪkəʊvə/, and in American English it is pronounced /ˈhɑːstl̩ ˈteɪkoʊvər/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “to go hostile”
- “to put in play”
- “to be in the crosshairs”
Learning
Memory Aids
Mnemonic
Imagine a HOSTILE army trying to TAKE OVER a castle against the king's will. Similarly, a company tries to TAKE OVER another against its management's will.
Conceptual Metaphor
BUSINESS IS WAR (battles, raids, defences, targets, victories).
Practice
Quiz
What is the defining characteristic of a hostile takeover?