A
hostile takeover happens when one company (called the acquiring company or "acquirer") sets its sights on buying another company (called the target company or "target") despite objections from the target company's board of directors. A hostile takeover is
the opposite of a
friendly takeover, in which both parties to the transaction are agreeable and work cooperatively toward the result.
Acquiring companies that pursue a hostile takeover will use any number of tactics to gain ownership of their target.
These include making a tender offer directly to shareholders or engaging in a
proxy fight to replace the target company's management. To defend itself against the acquirer, a target company can also deploy a variety of strategies. Some of the more colorfully named tactics are the Pac-Man defense, the crown-jewel defense, and the golden parachute.