A takeover of a corporation that is launched without the approval or agreement of the target corporation.
A takeover doesnÂ’t technically become hostile until the potential acquirer formally bypasses the board of directors and takes its offer directly to shareholders in a proxy contest. Even though a takeover is hostile, if the price being paid is high enough, the board may feel compelled to recommend the deal. However, management can mount various tactics to repel an unwanted takeover such as greenmail, finding a white knight, or a poison pill. See also greenmail, white knight, poison pill.