Friendly Takeover Law and Legal Definition

Friendly takeover is an attempt by a corporation to gain control of a publicly traded company with the cooperation of the target company. It is a situation in which a target company's management and board of directors agree to a merger or acquisition by another company. In a friendly takeover, a public offer of stock or cash is made by the acquiring firm. The board of the target firm will then publicly approve the buyout terms, which are then subject to shareholder or regulatory approval.