Question

Are hostile takeovers ethical or unethical? Please explain your position.

Are hostile takeovers ethical or unethical? Please explain your position.

Homework Answers

Answer #1
  • In my point of view hostile takeovers are ethical and legal in nature. Hostile takeover is acquisition of one company by other company without the consent of the targeted company.
  • If the acquisition or takeover is hostile then in that case there is no prior agreement between the companies regarding merger or acquisition.
  • As it is not done through any illegal means then it is always ethical as it is a general practice under the corporate world.
  • It is ethical because the company offers the targeted company and stockholders. Through this offer the company offers a specific amount against the shares and eventually takeover the company.
  • It will be called unethical if it is done by adopting any unfair practice or means which is not considered legal in the eyes of law.
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