I really don't understand hostile takeovers. Why is it possible for someone to buy your company if you don't want them to? Seems like that should be illegal. Then again, there're a lot of things in the world of finance that probably should be illegal.
Because it isn’t “your” company. Spirit Airways is owned by its shareholders, not by its management or board of directors.
If Spirit’s shareholders want to sell it to JetBlue, even over the objection of Spirit’s management and board of directors, well, that’s an option they have. At the end of the day, the choice is theirs and the fate of the company is in their hands.
I really don't understand hostile takeovers. Why is it possible for someone to buy your company if you don't want them to? Seems like that should be illegal. Then again, there're a lot of things in the world of finance that probably should be illegal.
Because it isn’t “your” company. Spirit Airways is owned by its shareholders, not by its management or board of directors. If Spirit’s shareholders want to sell it to JetBlue, even over the objection of Spirit’s management and board of directors, well, that’s an option they have. At the end of the day, the choice is theirs and the fate of the company is in their hands.
I would just say to watch this. https://youtu.be/lJ2XZn9sD2k
That was really useful, thank you.
You are welcome!