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Takeovers of other firms brings in important issues related to considering shareholdings in other firms as strategic investments.
Since you must pay at least a 40% premium over current market capitalization to achieve a successful takeover, a takeover bid for a company will usually require a significant amount of cash. You will need to carefully evaluate this investment
Once you have successfully taken over a company, you are responsible for making all its finance decisions. You will need to carefully monitor its financial health and decide when to withdraw dividends. You may sell your shareholding back to the sharemarket at large (this takes one year during which you may not meddle in its affairs).