Friendly take-over attempt

Our client was the target of an unsolicited but attractive takeover offer: the basis of the exchange of shares valued the target company at a good price and the acquiring company had recently completed an advertising campaign that had enhanced its image. The board was about to recommend its shareholders to accept the proposal. Wishing to gain a better knowledge of its future owner, the target company asked InfoForce for a due diligence of the acquirer.

Subsequent investigations revealed preliminary inquiries were under way in three countries about corruption by the acquirer to gain market share. Furthermore a suit was about to be brought against it for serious trademark infringement and a number of off-balance-sheet liabilities which had not been reported to the auditors. Our client’s board then opposed the takeover, avoiding an association with a company that later ran into serious legal and financial difficulties.

BACK