This Scene from Baazigar (featuring Shahrukh Khan) is a scene where he tells Chopra that he has taken over his company and now it will be called Sharma’s Company. How did this happen?
Not all mergers and acquisition are friendly and peaceful. In this movie, Shah Rukh Khan takes control of the management by purchasing all the shares without the knowledge of the management. This is known as Hostile takeover.
Hostile takeover takes place when the acquiring company wishes to takeover the target company against the will of the target company. Similar to the scene shown, hostile takeover is a bid to take control of the target company without the knowledge of the board of directors. Target company is motivated to do this, to acquire the company’s brand, their stronghold in the market, their technology etc.. Target company can resort to defensive strategies.
Poison Pill Strategy is one of the most effective way to defend against hostile takeover.
Just like a poison pill which must be very difficult to swallow, the company that is being taken over would make their shares extremely unattractive to the firm that is trying to acquire the company. Clearly, this did not happen in Baazigar.
Sharukh Khan is feeling so smug that he is wearing sunglasses indoors and became king of the company without swallowing the poison pill. 🙂