Anavex Life Sciences Corp (AVXL)

[imho]

A hostile takeover does not imply that a majority of common shares would be in the hands of the hostile owner...


Quote:

INVESTING FINANCIAL ANALYSIS
Hostile Takeover Bid
REVIEWED BY WILL KENTON Updated Jan 13, 2018
What is a Hostile Takeover Bid
A hostile takeover bid occurs when an entity attempts to take control of a publicly traded company without the consent or cooperation of the target company's board of directors. Since the board won't give its approval, the would-be acquirer has three methods at its disposal to gain control. The first is a tender offer, the second is a proxy fight, and the third is to buy the necessary company stock in the open market.

Sure it does, if it is to succeed. It would be difficult to remove the board without the majority of shares falling in line with the hostile party, no matter which approach is taken. Preferred shares can tip the balance and prevent such an event.

IMHO