Final answer:
When an activist investor tries to take over a company, they acquire a significant number of shares to gain power and influence the company's decisions. Examples include Carl Icahn's attempt to take over Apple. Activist takeovers can have both positive and negative effects.
Step-by-step explanation:
When an activist investor tries to take over a company, they usually do so by acquiring a significant number of shares in the company. This gives them the power to influence the company's decisions and potentially gain control of the company. Activist investors may use various strategies to achieve their goals, such as pushing for changes in company management, advocating for changes in company policies, or even attempting to sell off certain assets or divisions of the company.
One example of an activist investor taking over a company is Carl Icahn's attempt to take over the electronics manufacturer, Apple. In this case, Icahn bought a large stake in Apple and used his influence to pressure the company to increase its dividends and repurchase shares, which he believed would benefit shareholders. While Icahn was not successful in fully taking over Apple, his actions did have an impact on the company's decisions.
It's important to note that activist takeovers can have both positive and negative effects. On one hand, they can help drive positive changes in a company and improve its performance. On the other hand, they can also disrupt the company's operations and lead to conflicts between different stakeholders.