system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5 how do hostile takeovers work.

And what's up with 5%.
gpt
A "hostile takeover" allows a bidder to take over a target company whose management is unwilling to agree to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects the offer, but the bidder continues to pursue it, or the bidder makes the offer directly after having announced its firm intention to make an offer. 

A hostile takeover can be conducted in several ways.

A tender offer can be made where the acquiring company makes a public offer at a fixed price above the current market price. Tender offers in the United States are regulated by the Williams Act.

An acquiring company can also engage in a proxy fight, whereby it tries to persuade enough shareholders, usually a simple majority, to replace the management with a new one which will approve the takeover. Another method involves quietly purchasing enough stock on the open market, known as a "creeping tender offer", to affect a change in management. In all of these ways, management resists the acquisition, but it is carried out anyway.