Hostile Takeover Bids: Defensive Strategies


  • Richard A. Shaw



Energy Law, Petroleum Law


This article, after noting that many oil and gas companies are vulnerable to takeovers and that merger transactions are reaching record-breaking dollar volumes, examines and recommends steps that a corporation may take when facing a hostile takeover bid. These steps are defensive strategies that a chief executive officer, a board of directors, and other players should consider implementing when handling a merger. Recommended strategies for a corporation facing a takeover situation include creating a special committee, choosing appropriate financial and legal advisors, establishing a data room, and seeking other potential buyers. The author concludes that a successful defensive strategy can maximize value for a corporation's shareholders.