How can InBev force Anheuser to sell out?

Question

What is a "hostal takeover" and how can this happen?

Answer 1

A hostile takeover is accomplished when one party offers to buy the stock of the target company from its shareholders thus becoming the owner of the target company. To do this they have to get a majority of the target company's shareholddrs to agree to sell their stock.

Since shareholders are in it for the $$$ the offer has to be high enough to make it worthwhile selling the stock.

InBev has offered a substantial premium ( price higher than the stock's value) for the stock.

Answer 2

The management (majority shareholders) do not wish to relinquish control. Meanwhile the bigger company offers a high purchase price to all other stockholders, hoping to gain the majority of the shares in the company.

The majority shareholder gets the vote at the shareholder's meeting.

InBev is in a powerful position because of the weak American Dollar.

Answer 3

By going directly to the stockholders, who are most likely institutional owners, Inbev can offer a higher price than the current stock price and then have the stockholders force the sale.

Answer 4

Buying enough stock to force out the board members that oppose

Answer 5

Its when a publicly traded company like Anheuser Busch has the majority of its public equity bought by a hostile company which gives it control of the company.  It can be much more complicated then that but that is the gist of it.