Hostile takeover. Leveraged buyout. Almost every company chief executive hates to hear those two terms and tries to guard against his or her company becoming the object of an unwanted suitor. Lately, some major companies have been taking steps to protect themselves against possible buyout offers, and one of the most popular defense maneuvers has been to institute employee stock ownership plans (ESOPs). Why did companies originally begin using ESOPs? Will employee stock ownership plans actually protect companies from hostile takeovers? Will ESOPs be used in friendly leveraged buyouts, or will ESOPS be used in hostile takeovers to gain control over the very companies they were originally designed to protect?
© 1990 by the Board of Student Publications, University of Northern Iowa
"Employee Stock Ownership Plans: New Players in the Leveraged Buyout Game,"
Draftings In: Vol. 5:
2, Article 3.
Available at: https://scholarworks.uni.edu/draftings/vol5/iss2/3