Abstract

The paper aims at analyzing the takeover defenses adopted by Indian companies to avoid a hostile takeover. Hostile takeovers were rare in India as the M&A laws were stringent. Also, the Government and the financial institutions supported the promoter in the advent of a hostile takeover attempt. In 2011, a major amendment was done to the Takeover Code. We have analyzed the impact of this new regulation on the M&A scenario in India. The amendments in the takeover code have made hostile takeovers easy. Analysis of Promoter Shareholding pattern in 2145 listed Indian companies showed that promoters in most of the firms have increasing their stake to safeguard themselves against hostile takeovers. This was done in anticipation of the changes in the takeover code.

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