Companies pursuing hostile takeovers in the United States may find it more difficult to secure financing as interest rates rise, making it harder to earn the trust of their acquisition targets, according to some observers. Cases including Macy's are cited.
For companies attempting hostile takeovers in the United States, higher interest rates are seen as a factor that makes financing more difficult and raises challenges in securing acquisition funding. In addition, they may make it harder to earn the trust of target companies.
The article cites department store giant Macy's and a company involved in outdoor equipment as examples, and discusses how higher interest rates can affect financing capacity.