How To Take Over A Publicly Held Corporation

Section 12 (g) of the Securities Exchange Act of 1934 defines a Public Company as one with more than $1 million in assets and more than 500 stockholders. Public Companies are required to file annual 10-K Reports and other reports with the Securities and Exchange Commission and to make these reports available to the public. Such companies are also required to comply with a labyrinth of rules when they become the subject of a tender offer to take over the company.

Because of this, many savvy investors have become rich by finding companies vulnerable to a takeover. Some of the big time operators have become famous, such as Carl Icahn. However, there are many smaller operators in the field. A few have even gone to jail for doing this, such as Michael Milken and Ivan Boesky. Both of them had made profits of more than $100 million by doing this, before being prosecuted.

All of these takeover attempts require detailed knowledge of the rules and procedures of the Securities and Exchange Commission. This book teaches that. Almost any investor, even with very little funding, can launch a takeover attempt. This will usually cause the stock market price to rise. Indeed, that is often the strategy: Buy stock in a company, announce a takeover attempt which drives the price up and then sell at a profit.