What term describes an acquisition strategy where one company approaches shareholders directly?

The term that describes an acquisition strategy where one company approaches shareholders directly is known as a hostile takeover. This occurs when the acquiring company attempts to gain control of the target company by going directly to its shareholders, often bypassing the management of the target company. This strategy often arises when the target company's management does not agree to the acquisition, prompting the acquiring company to appeal directly to the shareholders in hopes of rallying their support to approve the takeover.

This approach contrasts with strategies like friendly acquisitions, where negotiations occur between the management of both companies to reach a mutual agreement, and strategic mergers, which involve cooperation and alignment of goals. A management buyout, on the other hand, involves existing managers acquiring a significant portion of the company, which is distinctly different from acquiring control through shareholder actions.