Examine a hostile acquisition and discuss the tactics employed by both the predator and the target companies.

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Hostilite acquisition refers to a business takeover where the target company doesn’t want to be bought and is against the attempt. Both the target and predator companies use different tactics in these cases to gain an edge over one another.

In order to acquire a majority of the stock, the predator will usually try to gain support from shareholders first by offering them a premium for their stock. They may also use tactics such as proxy contests or tender offers that allow them to force an immediate sale of shares if they can’t acquire enough through traditional methods.

The target company might try to stop any hostile offer by buying back shares, or issuing new shares. To make their balance sheet more attractive, the target company might raise debt or bring legal action against any attempted takeover. 

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