What does HTO mean in GENERAL

A hostile takeover is when an acquirer attempts to acquire another firm without the prior approval or agreement of its board of directors or shareholders.

A hostile takeover can occur in several ways. The most common methods include open market purchases, tender offers and proxy fights. Additionally, other tactics such as corporate restructuring may be employed as part of a hostile takeover strategy.

An advantage to using a hostile takeover is that it allows an acquirer to potentially gain control quickly and with fewer roadblocks than alternative strategies such as entering into negotiated agreements with existing owners or managers. On the flip side, there are many disadvantages associated with taking this approach including opposition from existing investors, legal actions that can challenge the deal, and regulatory investigations into potential unfair practices.

Companies that find themselves at risk for a hostile takeover often have several characteristics in common including falling stock prices, high debt levels and/or poor operating performance. Additionally, companies that have large cash reserves or valuable assets are also at higher risk for attempted takeovers.