A hostile takeover occurs when the acquiring company bypasses the target’s management and directly appeals to shareholders to sell their shares. The target’s management team typically does not support the bid and may actively try to block or discourage the attempt. This resistance often sparks a strategic battle between the two parties.

To defend against unwanted hostile takeovers, management may employ a variety of controversial tactics. These include the “poison pill,” which dilutes the acquiring company's holdings; the “crown-jewel” defense, where key valuable assets are sold or protected; and “golden parachutes,” which provide lucrative benefits to executives if they are ousted.

The target company may have defensive measures already in place before a takeover bid is made. These preemptive defenses are designed to make the company less attractive or more difficult to acquire. Alternatively, the company can respond reactively by implementing strategies to fight back once an unwanted bid is announced.

Overall, the dynamics of takeover attempts—especially hostile ones—are complex battles of strategy and negotiation. Both sides may employ various tactics to sway the outcome, with the ultimate goal of gaining or defending control of the company.