Hostile Takeovers Return: Unsolicited Bids Hit 15-Year High as Valuations Diverge
bIAnk AI Research · January 2026 · 7 min
Unsolicited takeover bids have reached a 15-year high as acquirers exploit valuation disconnects between strategic and market values, particularly in European markets.
Hostile and unsolicited takeover bids reached their highest level since 2011, with 48 significant unsolicited approaches announced in 2025. The trend reflects growing acquirer confidence and persistent valuation gaps between what boards accept and what markets price.
European companies are the primary targets. With many mid-cap stocks trading 30-40% below their 2021 peaks, acquirers are arguing that boards are failing to realize fair value for shareholders, making the case for hostile intervention.
Japanese hostile bids are a new phenomenon. Cultural barriers that historically made hostile deals impossible in Japan are eroding, driven by TSE governance reforms. Several landmark hostile bids have been launched, signaling a fundamental market shift.
Regulatory tools are being tested. Several European countries are strengthening foreign investment screening mechanisms, and some governments have intervened directly to block hostile approaches on national security grounds, even in non-defense sectors.
For target boards, the hostile environment requires enhanced preparedness. Poison pills, white knight arrangements, and pre-emptive strategic reviews are becoming standard defensive tools, particularly for undervalued mid-cap companies.
Key takeaways
- 48 significant unsolicited bids in 2025, highest since 2011
- European mid-caps trading 30-40% below 2021 peaks, making them vulnerable
- Japanese hostile takeovers emerging as cultural barriers erode
- Governments strengthening FDI screening, sometimes blocking deals on security grounds