Corporate finance: main task | MCO201
The predator usually first attempts to build support among shareholders by offering them a premium price for their stock in order to accumulate a majority stake. They may also use tactics such as proxy contests or tender offers that allow them to force an immediate sale of shares if they can’t acquire enough through traditional methods.
On the other hand, the target company may try to ward off any hostile bid by issuing more shares or buying back existing ones so that it becomes too expensive for the predator. Additionally, they might also increase debt levels in order to make their balance sheet less attractive or launch legal challenges against any takeover attempts.