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Protection from hostile takeovers
Pavel Efremkin
Protection from hostile takeovers is the job of our lawyers and financial advisors, who have a solid, successful background in asset protection.
When is this service needed?

Practical sense suggests that assets should be secured against a hostile takeover proactively, before the takeover attempt is made. Preventive measures will make a raider attack harder to perpetrate, more public and less attractive financially. When raiders meet with strong, smart resistance, they usually retreat and go find easier prey.

But even if the owner seeks help immediately after the attack began, the assets can, in many cases, still be fully or partially saved.

In any case, protection solutions must be customized to suit the specifics of your business: this is the key to making proactive asset protection work.

When is a raider attack more likely to happen?

  • When valuable assets are at stake, such as real estate, land, car fleet, equipment or intellectual property.
  • When the assets were acquired with irregularities.
  • The equity stakes/shares are not sufficiently consolidated.
  • High competition.
  • The assets are not properly institutionalized.
  • Controversy between the founders.
  • Unmanageable debt.

Information that should alert the owner:

  • More frequent purchases of your stocks, or your competitors stocks.
  • Attempts to bring legal action against your companys management.
  • Minority shareholders display unusual activity in trying to obtain your founding instruments and/or other corporate documentation.
  • Unsolicited investors arrive; major capital arrives in the region, and is backed by the regional government.
  • The lineup of shareholders and/or asset owners is changed in the Public Companies Register or Public Register of Real Estate Title (PRRET); PRRET receives queries regarding your real estate properties.

Asset protection options

Divide asset ownership and management

  • Place the assets in the custody of a management company, which may or may not involve an offshore vehicle

Make it more difficult to sell or cede the assets

  • Make precautionary provisions against asset sale in your companys founding instruments
  • Place the assets in trust
  • Mortgage or pledge the assets
  • Have your assets seized

Find ways to control your assets after they are sold

  • Lease out your assets with the option to buy them back
  • Mortgage or pledge the assets
  • Build up a manageable debt
  • Build up a massive consolidated equity stake: repurchase shares from minority holders
  • Give other members' incentives to do business together, e.g. dividends, loans, etc.
  • Make provisions to ban cession or assignment of equity shares to persons who are not members of the company.
For information about our fees, please contact Pavel Efremkin, Senior Lawyer at Competenz, at Tel. (812) 326-6055 or email: efremkin@competenz.ru

We will get back to you the same day.