Mergers & Acquisitions
5. Method of Takeover
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 22 Aug 2015
- The transaction through which a company obtains a controlling interest in an ASX-listed company can occur through a range of different processes. These different processes or methods are referred to as 'transaction structures'.
- The most common transaction structures (takeover methods) are:
- an off-market takeover bid; and
- a scheme of arrangement.
- An off-market takeover bid is suitable for either a hostile or friendly takeover.
- A scheme of arrangement is preferred for a friendly takeover but is generally not effective in a hostile situation.
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