Pallavi Arora talks about the ineffectiveness of the traditional defences of India that led to many hostile takeovers by the foreign nations in India.
Abstract
The central premise of this paper is to assess the theoretical possibility of conducting hostile acquisitions in India, as well as the defences exercisable by the domestic targets to forestall such deals. To further this premise, the paper comprehensively analyses the extant hurdles to hostile takeover activity in India, arising due to dominant promoter
holdings, regulatory restrictions imposed on the acquisition of finance and foreign direct investment in India. Thereafter, the author examines the anti-acquirer character of the Takeover Code, 2011, that inhibits a potential raider from effectuating a hostile takeover. Finally, the paper discusses the ineffectiveness of the traditional takeover defences in India, which leaves target companies with few viable strategies to fend off hostile suitors.