Company exposed to a hostile takeover

[rasar9]

Doing financial ratios on companies and I don't understand, how can having all cash or being too liquid expose a company to a hostile takeover from a bigger company?
I thought if you have cash tied up your unlikely to fight off other companies.

 

[kirby]

If your company is loaded with cash the takeover folks want it to get their hands on your cash. If you were loaded down with debt or poor quality assets then you are not attractive.

 

[Counterofbeans]

If you are worried about a takeover, the first thing I look at is the book value per share vs. the current stock price. When/if the BV/share > FV/share, watch out...