Hostile Takeover Law and Legal Definition

In business, a takeover is the purchase of one company (the target) by another (the acquirer, or bidder). Hostile takeover is an attempt to purchase a controlling stake in a corporation without either informing the board of directors or else continuing to negotiate with shareholders after the board of directors rejects the bid. Hostile takeovers are usually bad news, as the employee morale of the target firm can quickly turn to animosity against the acquiring firm.