ACCAspace
Provided by
ACCA Research Institute
ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com
, P4 Chapter 22 Content
1 Defences against hostile takeover bids
2 The form of consideration for a takeover
3 The regulations of takeovers
4 Test your understanding
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2
, 1.Defences against hostile takeover bids
If the board of directors of a target company decides to fight a bid
that apprears to be financially attractive to their sharehoders ,then
they should consider one of the following defences:
• Pre bid defences
communicate effectively with shareholders
revalue non-current asset
poison pill
change the Articles of Association (super majority)
• Post bid defences
appeal to their own shareholders
attack the bidder
white knight
counterbid ('Pacman')
Refer the bid to the Competition authoritiesCopyright © ACCAspace.com
ACCAspace 中国ACCA特许公认会计师教育平台 3
Provided by
ACCA Research Institute
ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com
, P4 Chapter 22 Content
1 Defences against hostile takeover bids
2 The form of consideration for a takeover
3 The regulations of takeovers
4 Test your understanding
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2
, 1.Defences against hostile takeover bids
If the board of directors of a target company decides to fight a bid
that apprears to be financially attractive to their sharehoders ,then
they should consider one of the following defences:
• Pre bid defences
communicate effectively with shareholders
revalue non-current asset
poison pill
change the Articles of Association (super majority)
• Post bid defences
appeal to their own shareholders
attack the bidder
white knight
counterbid ('Pacman')
Refer the bid to the Competition authoritiesCopyright © ACCAspace.com
ACCAspace 中国ACCA特许公认会计师教育平台 3
