Abstract
The methods and tactics of defending against hostile takeover in practice are a very complex process. In general, they can be classified into three basic groups: preventive, active and universal. Preventive defense measures impose barriers to possible hostile takeovers, such as: dual capitalization, recapitalization, ESOP shares, poison pills, changes to corporate statutes, gold and silver parachutes, change of place of registration. If preventative measures are not effective enough and an unwanted takeover bid is sent to the target corporation, then active defense measures are in place: White Knight, shareholder persuasion, green mail, standstill agreement, capital structure change, litigation, Pak-Man defense. Some anti-takeover methods have universal application.
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