Hostile Takeovers

Momentum seems to be shifting toward Microsoft Corp. in its high-stakes bid to buy Yahoo Inc., analysts said Friday. Although some Yahoo shareholders have called for Microsoft to raise its offer, not all are yodeling for a much higher price. That's because nearly 90% of Yahoo's institutional shareholders, including most of the top 20, hold Microsoft stakes, according to a report released by RiskMetrics Group, a financial risk-management firm.

Delta Air Lines Inc., fighting a hostile takeover bid from US Airways Group Inc., has held talks with Northwest Airlines Corp. about a merger, a person familiar with the matter said Wednesday. Northwest, the fifth-largest U.S. carrier, wants to ensure that it is not left out of any industry consolidation, said the person, who declined to be identified because the meetings are private. The discussions are preliminary, the person said. A tie-up with Northwest may give No.

The Nasdaq Stock Market Inc. failed for the second time in a year to win control of the London Stock Exchange, revealing Saturday that its $5.3-billion hostile bid had been spurned by the British bourse's shareholders. Nasdaq, which abandoned its first attempt at the London exchange several months ago, had extended its current offer by two weeks in an attempt to win over more shareholders -- a move that proved fruitless. In the end, the New York-based exchange received acceptances worth just 0.

Federal regulators have requested more details about Express Scripts Inc.'s hostile bid for competitor Caremark Rx Inc., which could mean closer antitrust scrutiny of the proposal. The Federal Trade Commission issued a second request to Express Scripts seeking more information about its $26.5-billion cash and stock proposal to acquire Caremark, whose board is favoring a bid from CVS Corp. Nashville-based Caremark is the nation's second-largest pharmacy benefits manager, and Maryland Heights, Mo.

Wings Financial of Minnesota is attempting to swoop in and nab El Segundo-based Continental Federal Credit Union in what many believe would be the first hostile takeover in credit-union history. "The way they are going about this is unprecedented in our industry," said Tom Glatt, president of Continental Federal. "The offer was unsolicited, unwelcome and unwarranted."

Swiss drug maker Roche said Monday that it would launch a hostile tender offer to acquire Ventana Medical Systems Inc. for about $3 billion after its efforts to negotiate a friendly deal were rebuffed. Acquiring Ventana, which specializes in tissue-based diagnostics, would give Roche, one of the world's biggest diagnostic companies, access to technology that helps researchers and doctors better select the right drugs for individual patients.

BASF has made a $4.9-billion hostile, all-cash offer for U.S. pigment and chemicals maker Engelhard Corp., aiming to become the world's leading producer of pollution control materials, the German chemicals company said Tuesday. BASF said its $37-a-share offer -- nearly a 23% premium over Engelhard's Dec. 30 closing price -- was unlikely to meet any significant regulatory hurdles.

Mittal Steel Co., already the world's largest steelmaker, announced a hostile $22.8-billion offer for rival Arcelor on Friday, a deal that would create a global powerhouse far outstripping its nearest competitors. The cash and stock bid, which offers Arcelor shareholders a 27% premium to the stock's closing price Thursday, is the largest in the history of steelmaking.

From Paris to Berlin, and from Warsaw to Rome, governments are showing increasing hostility toward foreign companies wishing to take over prized national assets. The obstacles faced by bidders from abroad include discriminatory laws and downright opposition against individual mergers. The trend has caused concern not just in the boardrooms of acquisitive European companies, but also in the European Commission.

U.S. investors Carl Icahn and Warren Lichtenstein threatened to start South Korea's biggest hostile takeover after tobacco company KT&G Corp. rejected a bid valued at $10 billion. Icahn and Lichtenstein, New York-based hedge fund managers, said they might make a tender offer after the board of Daejeon-based KT&G spurned their proposal Monday.