Borovkov, M.S. Complex of preventive measures for protection of business against hostile takeover.

Abstract: The object of studies in this article is one of the divisions of the theory of takeovers and mergers in business, namely, hostile takeover, and the article is written after taking the course “Security of entrepreneurial activity”. Methodologically, the author provides an overview of the scientific publications on foreign and Russian practice. He provides theoretical analysis of the main elements, models and possible strategies for the protection against hostile takeovers. The author pays special attention to the Russian situation, involving the Russian legislation and practical examples. For the first time the author used Redel Group factual data for the analysis. Most of the strategies should be applied together for a maximum results. The pills, the parachutes and supermajority should be displayed publicly in order to lower the possibility of future takeover and raising the price of shares. The protection of assets, strategic alliance and strategic acquisition should be used only in emergency situations. The author concludes that the situation in the Russian market of mergers and acquisitions is not as tragic, as it seems. In spite of the domination of the administrative resource, lack of development of the financial market, lack of friendly takeovers, and corruption, one may protect his own business, if he takes care of it in advance.

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