Раскрытые темы по английскому / Topic_11_Risk_of_a_takeover

Risk of a takeover

Changing of the owner of the company usually entails replacement of the managers of a company. The reason of such changing is a distrust to old managers. Old managers are not interested in changing the owner because they may lose their position. It is especially important for a top manager of a company because he has his own view on the future of the firm.

There are 2 methods to takeover the company:

1. Buying it’s shares on the open market. The goal of a company-invader is to buy up certain percent of shares which will provide to control the activity of the taking up company. This percent may be different for a different companies and depends from the structure of the share capital: is it share between many small shareholders of between large ones. To prevent such situation the block holding of shares have to be in the ownership of top manager of the company.

2. Buying it’s debts. In this case the goal of a company-invader is to buy up debts of a company. Then invader raises a demand to pay for it, and if the company has no enough assets to pay for them it goes bankruptcy and pass into the ownership of the invader. To prevent such situation company should carefully draw up a transfer notes.

There are several ways to takeover the company. The most well-known is to own the control stock it’s easier when the joint stock capital is splited to a little parts. Second way is buying up debts of a target company to accumulate them and then claim then; if the that company should not pay back it will be took up.