Mergers and Acquisitions
Mergers
Two companies join to form one company.
Acquisitions
One company completely takes over another company.
Acquisition strategies include 'tender offers and "proxy fights.
*A Tender offer (hostile takeover) is an offer to buy a target's company stock at a price higher than its current value to persuade the shareholders to sell their stocks.
A Proxy fight is when the acquiring company tries to persuade the shareholders of the target company to vote out its existing managers and replace them with managers who agree to the goals of the acquiring company