Frank Aquila Discusses Hostile Bids (Reuters Insider)

May 27, 2010
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Mr. Aquila was featured in a Reuters Insider video interview in which he discussed the factors driving the increase in hostile bids over the last few years. "[The CEOs and corporate boards are] doing these transactions because there's a strategic need for a particular target company," he said. He noted that it is the institutional shareholders who ultimately drive changes in corporate governance and the outcome of many of these bids. "U.S. companies have had to take away their takeover arsenal at just the point in time when U.S. corporates have decided that it's okay to do hostile bids," he added. Mr. Aquila noted, "If that hostile bid comes, you need to first of all have credibility with institutional shareholders and secondly, you need to have a plan to show how you are going to create value." He also said that private equity firms tend not to be the aggressors in hostile bids.