TakeoverThe term 'takeover' in commerce refers to one company (the acquirer) purchasing another (the target). Such events resemble mergers, but without the formation of a new company.
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2 Forms of Takeover
Corporate takeovers occur readily in the United States and in the United Kingdom. They do not happen often in Germany because of the dual board structure, in Japan because companies have interlocking sets of ownerships known as keiretsu and in the People's Republic of China because the state majority-owns most publicly listed companies there.
Forms of Takeover
The target company has several methods to avoid the buyout. These include legal actions, as in the case of the Hewlett-Packard purchase of Compaq, or the use of a poison pill, as set up by Transmeta.