Company Acquisition and Takeover vs acquisition , Finance, Other Engineering

Company Acquisition, Takeover vs acquisition and holding copany

A fundamental characteristic of merger (either through absorption or consolidation) is that the acquiring or amalgamated company (existing or new) takes over the ownership of the other company and combines its operations with its own operations. Acquisition may be defined as an act of acquiring effective control over assets or management of a company by another company without any combination of businesses or companies. A substantial acquisition occurs when an acquiring firm acquires substantial quantity of shares or voting rights of the target company.


Generally speaking takeover means acquisition. A takeover occurs when the acquiring firm takes over the control of the target firm. An acquisition or take-over does not necessarily entail full, legal control. A company can have effective control over another company by holding minority ownership.

Takeover vs. acquisition

Sometimes, a distinction between takeover and acquisition is made. The term takeover is or unwilling acquisition, it is called a takeover. In an unwilling acquisition, the management of Target Company would oppose a move of being taken over. When managements of acquiring and target companies mutually and willingly agree for the takeover, it is called acquisition of friendly takeover.

Holding company

A company can obtain the status of a holding company by acquiring shares of other companies. A holding company is a company that holds more than half of the nominal value of the equity capital of another company, called a subsidiary company, or controls the composition of its board subsidiary company, or controls the composition of its board of directors. Both bolding and subsidiary companies retain their separate legal entities and maintain their separate books of accounts. Unlike some countries, like the USA, or the UK, India is not legally required to consolidate accounts of holding and subsidiary companies.
Posted Date: 2/1/2012 12:08:05 AM | Location : United States

Related Discussions:- Company Acquisition and Takeover vs acquisition , Finance, Assignment Help, Ask Question on Company Acquisition and Takeover vs acquisition , Finance, Get Answer, Expert's Help, Company Acquisition and Takeover vs acquisition , Finance Discussions

Write discussion on Company Acquisition and Takeover vs acquisition , Finance
Your posts are moderated
Related Questions
How to calculate the field of views

find the newton raphson iterative formula for a reciprocal of a number N and hence find the value of 1/23.correct to 5 place of decimal

What is a fire risk assessment? Fire Risk Assessment (FRA) can mean different things to different people.  Here we will look at the understanding in the UK and the understandin

Hi I need someone to help me to do a metallurgy assignment

Interior noise is basically airborne or structure-borne. The excitation sources of vibratation and noise from engines can be divided as mechanical, combustion, and flow sources.

hi um how do people design phones and stuff like da

#questi1.) A house has 0.5 cm thick single-pane glass window 2m by 1.5m .The temperature is 20 degrees Celsius and the outside temperature is -20 degrees Celsius .If there is an ai

A steak which is 2.5cm thick is cooking in a frying pan which has a 4mm thick base. The electric element used to heat the pan is turned to a level such that the bottom surface of t

why should an aircraft maintenance technician be familiar with weld nomenclature