What characterizes a hostile takeover?

A hostile takeover is characterized by the acquisition of a company against the wishes of its management. In a hostile takeover, the acquiring company bypasses the target's management and board of directors by directly appealing to the shareholders or making a tender offer to purchase shares at a premium. This type of acquisition typically occurs when the management of the target company does not believe the takeover is in the best interests of the company or its shareholders, leading to resistance from those in leadership positions.

In contrast, a voluntary agreement or a merger with management support reflects a collaborative approach where both companies agree on the terms and conditions of the acquisition, which is not the case in a hostile takeover. This environment creates a significant difference, as hostile takeovers often lead to tensions and strategic battles between the management teams of both firms.