Hostile merger and acquisition (M&A) activity around the globe has reached a seven-year high, to levels not seen since before the global financial crash of 2008, according to a new study.
Current year-to-date hostile activity stands at $273.4 billion, according to figures from research firm Dealogic published Wednesday. Last year's figure for the same year-to-date period stood at just $70.6 billion. This year's performance so far looks to be the highest since 2007's figure of $377.4 billion, Dealogic added.
Hostile takeovers are where an acquiring company can't come to an agreement with the target company's management, instead going directly to the company's shareholders or replacing management to push through the deal.
Whilst volume may be high the amount of deals are relatively low. Dealogic explained that only 23 deals on the table so far this year, adding that the Pfizer takeover of AstraZeneca is driving total volume – a surprising addition as the U.S. pharma giant has said it has no intention of making its approach for the British company hostile.
Anglo-Swedish drugs company AstraZeneca rejected a revised $116 billion bid from U.S. pharma giant Pfizer on Monday, saying the U.S. company's "final" offer is inadequate and would present significant risks for shareholders.