when a company uses debt it s known as a leveraged buyout debt capital for the acquirer may come from new funding lines or the issuance of new corporate bonds 
example of a takeoverconagra initially attempted a friendly acquisition of ralcorp in 2011 when initial advances were rebuffed conagra intended to work a hostile takeover ralcorp responded by using the poison pill strategy conagra responded by offering 94 per share which was significantly higher than the 65 per share ralcorp was trading at when the takeover attempt began ralcorp denied the attempt though both companies returned to the bargaining table the following year 3 the deal was ultimately made as part of a friendly takeover with a per share price of 90 4 by this time ralcorp had completed the spinoff of its post cereal division resulting in approximately the same offering price by conagra for a slightly smaller total business 5 