Defensive Surveillance

Has an investor recently filed a 13D on your company that suggests non-passive intentions? Are their rumors circulating in the market place about the possibility of a potential hostile suitor making a run at your firm? When a company is faced with the prospects of a “bear hug” by a hostile investor it is crucial to keep a watchful eye on any and all trading activity.

Procedures established to put your company in the best position to ward off hostile suitors are 1) establish current holdings of non-passive investor and get a firm grasp of its probable intentions, 2) compile an overview of the entire shareholder profile from a voting control perspective, and; 3) continually monitor trading activity in order to keep the shareholder profile updated.