Abstract
Though the conclusion of the Arcelor-Mittal deal turned out to be an amicable one, it did lead to an increased focus on the question of the options available to a company to avert an undesirable takeover bid, and the legitimacy of doing so. Of late, there have been a spate of takeovers, and there has been much debate on the legitimacy of takeover defences. This paper attempts to study one measure that is available to the target company: buyback as a takeover Defense. The attempt will be to study the area with reference to the difference in the approach across three countries: India, UK and the USA. The first section will give a brief introduction to the problem. The second section will examine the permissibility of buyback as a Defense to a proposed takeover and the rules to be complied with in doing so. The third section will look at the effectiveness of buyback as a takeover Defense, and the fourth will examine the desirability of employing the technique with reference to its impact on shareholder value. In the fifth and final section the author will give a brief overview of the law in this area and examine whether buyback of shares should be a preferred Defense to takeovers, both in terms of efficiency and desirability.
Recommended Citation
Gupta, Sakshi
(2007)
"Regulation of Takeover Defences: A Comparative Study of Buyback of Shares as a Takeover Defence,"
National Law School of India Review: Vol. 19:
Iss.
1, Article 5.
Available at:
https://repository.nls.ac.in/nlsir/vol19/iss1/5
