A takeover offer which is recommended by the board of the target company.
Search the (stock)market for companies most comparable to the target company.
The strategy also raises cash for the target company, often used to buy back its own stock or go private.
One reason is that the target companies have such high market values.
The target private company simply dissolves and little legal issues are involved.
Under the practice, target companies pay raiders more than the market price for their stock to ward off attack.
Direct communication with a target company's employees is illegal, however.
At least for now, the fund will take less than a 5 percent stake in target companies.
Acquiring companies usually offer a target company a premium over its share price.
When the decision is made to approach a target company the best way of doing this should be considered.