3 ms·
> During a hostile takeover, someone buys 51% of the shares. They then elect a board of people who will approve whatever they want. This is confusing. During t
by omegalulw 4y ago
> During a hostile takeover, someone buys 51% of the shares. They then elect a board of people who will approve whatever they want.
This is confusing. During the TWTR discussions, one that regularly came out is the importance of a board's fiduciary duty. Buying 51% doesn't let you take the company private, and merging at 50% of the price seems like a monumentally indefensible decision, especially when it is with the 51% holders company. I find it hard to believe you can get away with that.
- lupire 4y agoManagement gas extreme leeway to use it's judgement. All they have to do is claim that they will attempt to raise the stock over time price or otherwise make shareholders happier. If many shareholders disagree, they can sue for mismanagement.