Hostile takeover involves a company taking over another company without the approval of the target company.. On and/or off market.. The board will tell shareholders to "REJECT THE OFFER" or "TAKE NO ACTION" while the bidder goes on and sends out the acceptance forms to shareholders and those that want to sell will go on and sell (allows hanglong or their helpers to buy on market and accept the offer). This way forcing a takeover; once they have about 70% the board will have no way of stopping the takeover and will advise shareholders they can no longer hold off the takeover and to now ACCEPT the offer..
Though at the moment it seems this won't be happening as the board is negotiating with them.. And Hanglong have said they want the approval of the board.
It happened to Just Group a couple years ago when Premier Investments made a hostile takeover on them, I'm sure there are other examples.. I don't know too much about what happened at Brockman but suspect it was also a hostile takeover/takeover attempt
SDL Price at posting:
50.5¢ Sentiment: LT Buy Disclosure: Held
