Hostile Take-overs become the site of battlefields as it is witnessed in Arcelor Mittal takeover case. Five month long fierce takeover battle occurred between Arcelor and Mittal Steel which brought a lot of excitement for the steel industry. The takeover was considered to be “150% hostile”. Although the abuse of anti-takeover defensive tactics by management threatened to destroy the deal by depriving corporations and shareholders of the independence to make their own decisions, present case law promised to eliminate this peril in future. An account of Mittal's(Hostile Acquirer) actions to cope with defensive measures implemented by the target company(Arcelor) has been shown in the present study. From this case study it has been concluded that hostile acquirer had to raise the offer price in order to close the deal. Defensive measures played a significant influence in strengthening the target company's bargaining power and flexibility in dealing with hostile acquirers.
Takover, Poison Pill, White Knight, Green Mail, Proxy Fight
