Enterprising Investor Forum

Hostile takeover time? Thursday, March 13, 2008

As Carlyle Capital is on the verge of collapse and the economic outlook seems to be rapidly deteriorating, cash rich companies are going shopping.

The interesting this is that, especially in the tech sector, the predators have been trying to make friendly acquisitions without pushing to hard and threatening to go hostile. However, Electronic Arts just announce a change in strategy and began a 2 billion dollar tender for Take-Two Interactive. Is this going to push others to follow in their footsteps? Will Microsoft decide to change gears and take things into their own hands with respect to their Yahoo! offer?

As conditions worsen, these predators will no doubt start to act more aggressively and their prays will be left with very little room to maneuver…and don’t forget companies like GE, things could start to get very interesting.

Let’s see….