Editing Takeover (section)

=== Friendly takeover ===
{{Further|White knight (business)}}
A ''friendly takeover'' is an acquisition which is approved by the management of the target company. Before a bidder makes an [[tender offer|offer]] for another company, it usually first informs the company's [[board of directors]].

In a private company, because the shareholders and the board are usually the same people or closely connected with one another, private acquisitions are usually friendly. If the shareholders agree to sell the company, then the board is usually of the same mind or sufficiently under the orders of the equity shareholders to cooperate with the bidder. This point is not relevant to the UK concept of takeovers, which always involve the acquisition of a public company.{{citation needed||date=May 2024}}

A "bear hug" is an unsolicited takeover bid which is so generous that the shareholders of the target company are very likely to submit, accepting the offer.<ref>{{cite book |last=Wasserstein |first=Bruce |author-link=Bruce Wasserstein |title=Big Deal: Mergers and Acquisitions in the Digital Age |publisher=Warner Books |year=2000 |page=691-694 |chapter=Bear Hug |chapter-url=https://archive.org/details/bigdealmergersac00wass/page/690/mode/2up?q=%22bear+hug%22 }}</ref>