When facing a hostile takeover trough a hostile bid the board of directors will act accordingly to protect their independence and current management or to ensure that the hostile bidder is pressured to sweeten their bid further. Often, the main purpose of the chosen defense strategy is to make the acquisition more costly or time consuming and in such way making the targeted company less attractive due to the rise in cost which follows. This can be done through several different ways and these measures are commonly called defense strategies, shark repellent tactics or antitakeover measures. These can be used in a reactive approach to fend off a presented hostile bid or be used in a proactive approach to make sure to that future raids from targeting companies are slows down or even hindered

There are many different defense strategies to use and are often used in combination with each other to ensure the effectiveness of the defense. There is no one-situation fit all strategy and therefore the choice of strategy is dependent on the acquisition strategy used by the acquirer and also what motives the targeted board of directors have available

Required

1. What is a hostile takeover?
2. What are the driving forces behind a hostile takeover?

Which different hostile takeover proactive and reactive defenses are available when facing a hostile takeover bid from another company?