Corporate raid

A corporate raider, also known as corporate looters who is a financial investor who acquires a majority interest in most listed companies in order to redistribute them then either a profit or to break, that is to sell unprofitable business units and, if necessary, to liquidate. Corporate raider are referred to in the German media by its critics as locusts.

As an alternative to a full takeover of the company, the strategy of the investor is also often to exert public pressure on management after the acquisition of a minority stake. This can then lead to the demise of the leadership or to the, at least partial, implementation of the required business strategy.

If the items of a company have a higher value than the whole, at a breaking up the company a profit by releasing cash or through the sale of financial investments and real estate, but also plants and industrial property rights (trademarks, patents ) can be realized.

Known Corporate Raider

  • Ivan Boesky
  • Vincent Bolloré
  • James Goldsmith
  • Carl Icahn
  • Guy Wyser- Pratte

Corporate Raiders in fiction

  • In the movie Wall Street 1987 Michael Douglas plays a corporate raider named Gordon Gekko. The smashing of a flight company is the main conflict between the main characters Gordon Gekko and Bud Fox (played by Charlie Sheen ).
  • The main character Edward Lewis in the movie Pretty Woman (1990 ), the company Morse Industries tries to take over. He uses political influence, after he has fallen in love with Vivian and become thoughtful, he decides at the end of the film to create something rather than just destroy u. Therefore, he is not planning to break up the company, but acquire new orders.
  • " Larry the Liquidator " is the main character of the movie Other People's Money (1991). Dany DeVito plays Larry, who wants to dismantle the traditional company New England Wire and Cable. The daughter of the company founder, into which he has fallen in love, persuaded to invest and to save the company but still it after the hostile takeover in new products.
  • Devin Weston in the game Grand Theft Auto V ( 2013) has also become rich through hostile takeovers of companies.
Other People's Money Vulture fund
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