Suppose you own stock in a company. The current price is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company's management immediately begins fighting off this hostile bid. Is management acting in the shareholder's best interests? Why or why not?
It depends on the reason why your compnay's management is rejecting this bid, and the ultimate reason is they think the bid is too low.
Say the management (hereafter mgt) is willing to sell the shares at $30, and is fighting off this hostile bid in hopes that tthe bidder will increase the bid. In this case the mgt is acting in the shareholders best ...