Anti-Takeover Statute

This is an area of the law that is debated on a regular basis (all the snooty universities long-hairs have written about it). In short, state laws can at times err on the side of companies located in that state in the event of a potentially hostile takeover. Basically, these laws keep the opposing team from taking over a corporation, presumably in part to protect jobs within that state.

You can imagine RobotoCo from California, entering a small town in Ohio in a hostile takeover of their sock-making plant, firing all 1,800 employees and replacing them with The Rosie 2000. Cataclysm for the city and not a good sitch for the politicos in the state. And the issues fly directly in the face of state versus federal versus international laws...the shareholders of the sock making company MAY be from Ohio; but they're likely from all over the country. Maybe from all over the world.

So how do anti-takeover laws help the actual owners of the company? And if they're enforced in this sock company, will any new companies ever want to move into Ohio? Will existing companies begin to leave? So yeah...these laws can be good and bad.