Hostile
HOS-tuhl
/ˈhɑːstl/
(Of a takeover bid) opposed by the management and/or board of directors of the target company.
Describes the nature of a corporate action, specifically that it is unwelcome by the current leadership of the company being targeted.
The story behind the word. The word 'hostile' comes from the Latin 'hostilis,' meaning 'of an enemy,' which itself derives from 'hostis,' meaning 'enemy' or 'stranger.' In the context of a takeover, it perfectly captures the feeling of being attacked by an 'enemy' company, whose intentions are unwelcome and potentially damaging to the existing leadership.
Word relationships
- Unfriendly: A more general term, 'hostile' is specific to the strong opposition in a business context.
- Antagonistic: Implies active opposition or rivalry.
- Friendly: Describes a takeover or merger that is welcomed by the target company's management.
- Amicable: Characterized by friendliness and goodwill.
Commonly confused with
- Aggressive: An 'aggressive' bid might be very determined or high-priced, but not necessarily 'hostile' if the target's board is amenable.
Word family
- hostility (noun): Hostile behavior; unfriendliness or opposition.
Collocations
- hostile takeover
- hostile bid
- hostile environment
- hostile intent
Example sentences
- "The board of directors vowed to fight off the hostile takeover attempt, calling the offer undervalued and detrimental to shareholder interests." Reporting on a corporate battle.
- "To avoid a hostile bid, many companies implement 'poison pill' defenses designed to make them unattractive acquisition targets." Discussing M&A tactics.
Memory hook
A 'HOSTILE' takeover is like an unwelcome 'HOST' trying to take over your home. HOSTILE = UNWELCOME.
When not to use
Do not use 'hostile' to describe a takeover that is agreed upon by both companies' boards; in that case, it would be a 'friendly' takeover or simply an 'acquisition.'
Fun facts
- Famous hostile takeovers include Kraft's acquisition of Cadbury and Oracle's acquisition of PeopleSoft.
Related words
Explore more words
antagonism, inhospitable, antagonist, confrontation, enmity, intrusive
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