What is an Anti-Takeover Statute?

An anti-takeover statute is a law designed to deter companies from launching hostile takeovers of other companies.

How Does an Anti-Takeover Statute Work?

Anti-takeover statutes exist in some places in order to protect the autonomy and interests of companies incorporated in those states. Though their character differs from state to state, anti-takeover statutes either prohibit takeovers or set forth penalties against forcibly purchasing companies.

Why Does an Anti-Takeover Statute Matter?

Anti-takeover statutes are a double-edged sword. Although these statutes prevent the detrimental consequences of hostile takeovers, they can also inhibit mutually profitable merger opportunities between companies.

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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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