Corporate Raiding Russian Style: Hostile Takeovers via Corruption and Fraud

30 Pages Posted: 6 Feb 2011

Date Written: February 4, 2011

Abstract

Raiding along with corruption is the number one problem in Russia. Raiding is a hostile takeover that manifests a fight for property or other valuable assets that often involves corruption and fraud. In addition to production facilities, real estate and land are major targets of raiders. Raiding reaches far beyond private enterprises. Raids are organized against the state enterprises and state property as well. Documents show that disposal fields, industrial waste, oil refineries, private banks, public utility companies, electricity and oil distribution centers, facilities, and pipelines, abandoned state and private plants, entertainment centers, sea ports, construction sites, agricultural land, resort areas, economic quotas on exploitation of natural resources, resort areas, tanks and ammunition, technologies and technical documentation, TV companies, radio frequencies, and even dolphins are all targets of raiders. Essentially, anything of value is potentially an object for a raider attack. Oftentimes, raiding attacks are supported by the state organizations, including courts. The mechanisms used for raiding attacks vary and are likely to increase in variety and become more sophisticated. Confusing tax system and tax evasion charges are used for taking over large companies with the use of the state apparatus.

Keywords: corruption, hostile takeover, property rights, raiding, Russia, Yukos

JEL Classification: K42, P26, P31, P37

Suggested Citation

Osipian, Ararat, Corporate Raiding Russian Style: Hostile Takeovers via Corruption and Fraud (February 4, 2011). Available at SSRN: https://ssrn.com/abstract=1755223 or http://dx.doi.org/10.2139/ssrn.1755223

Ararat Osipian (Contact Author)

Vanderbilt University ( email )

Nashville, TN 37240
United States

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