BROWSE

Killer Bees

What is 'Killer Bees'

An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an attempted hostile takeover from occurring. Companies use a variety of anti-takeover measures, sometimes referred to as shark repellents, to discourage unfriendly takeover attempts from happening. Once an unfriendly takeover attempt has been initiated, the company can use other anti-takeover measures to deter or prevent the takeover.


The use of killer bees is one anti-takeover measure that a company can employ. Other tactics include the white knight – a more friendly acquiring company willing to enter the bidding war; the standstill agreement – a negotiated agreement that limits the takeover company's holding in the target company; the Pacman defense – the target company makes a takeover bid for the stock of the bidding company; and litigation – to delay a takeover attempt.

Explaining 'Killer Bees'

The merger and acquisition boom of the late 1980s forced companies to develop strategies to thwart would-be takeovers. Killer bees, named for the insect that aggressively swarms and overpowers its victims with hundreds of stings, act aggressively on behalf of a firm that is under the threat of an unfriendly or hostile takeover. The killer bee may employ tactics such as making the target company less attractive or more difficult to acquire.


Further Reading


E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and Banking© Erik Banks 2010
link.springer.com [PDF]
This book discusses the arrival of Africanized honey bees ("killer bees", which are crosses of European races of Apis mellifera with the more aggressive African subspecies, A. m. scutellata) in the Americas, their biology, and their impact on the bee-keeping industry and agriculture …

Taking Feyerabend to the next level: On linear thinking, indoctrination, and academic killer beesTaking Feyerabend to the next level: On linear thinking, indoctrination, and academic killer bees
dl.acm.org [PDF]
This book discusses the arrival of Africanized honey bees ("killer bees", which are crosses of European races of Apis mellifera with the more aggressive African subspecies, A. m. scutellata) in the Americas, their biology, and their impact on the bee-keeping industry and agriculture …

A Review of: “Tammy Horn. A Review of: “Tammy Horn.
www.tandfonline.com [PDF]
This book discusses the arrival of Africanized honey bees ("killer bees", which are crosses of European races of Apis mellifera with the more aggressive African subspecies, A. m. scutellata) in the Americas, their biology, and their impact on the bee-keeping industry and agriculture …

Sustainable property investment: valuing sustainable buildings through property performance assessmentSustainable property investment: valuing sustainable buildings through property performance assessment
www.tandfonline.com [PDF]
This book discusses the arrival of Africanized honey bees ("killer bees", which are crosses of European races of Apis mellifera with the more aggressive African subspecies, A. m. scutellata) in the Americas, their biology, and their impact on the bee-keeping industry and agriculture …



Q&A About Killer Bees


How does the Pacman defense work when trying to deter or prevent an unfriendly takeover?

The target company makes a bid for the stock of the bidding company using this strategy. This strategy works well if there is only one bidder for your company's stock. However, if there are multiple bidders, this strategy may not be effective because it will encourage more bidders and drive up prices on your stock even further than they already have gone up due to initial bids being made on your stock by other potential buyers who were waiting for you make your move first before making their own bids on your stock. This could potentially end up costing you more money than what you would have had otherwise spent if you had just let them buy out your entire business without doing anything at all about it until after they had bought out all of your shares of stock so that they could then own 100% ownership interest in your business instead of having owned

What are shark repellents?

Shark repellents are anti-takeover measures used by companies to keep unfriendly takeovers from occurring.

What is a killer bee?

A killer bee is an individual or firm that helps a company fend off a takeover attempt.

How does a company use the tactic of the standstill agreement in order to deter or prevent an unfriendly takeover?

The standstill agreement is one way that companies can use in order to deter or prevent an unfriendly takeover.

How can you deter or prevent an unfriendly takeover once it has been initiated?

Companies use other anti-takeover measures such as killer bees and white knights to deter or prevent an unfriendly takeover once it has been initiated.