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Bear Hug
An acquisition strategy where the acquirer offers to purchase a company at a premium to its market value, often putting pressure on the target company's board to accept the offer.
Implications
An acquisition strategy where a company offers to buy another at a premium price, putting pressure on the target�s board to accept the offer, even if unsolicited.
Example
Example: In 2014, Valeant Pharmaceuticals made a bear hug offer to acquire Allergan at a significant premium, putting pressure on Allergan�s board to accept the deal.
Related Terms
Different from a hostile takeover, where the acquirer directly approaches shareholders, a bear hug is a more aggressive approach to force the board�s hand.
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