how does a hostile takeover work? (it seems so simple; how can a company avoid one?)?

Answer 1

Hostile take overs are easy. You accumulate the shares of the victim to certain level and advertise for and open tender for it's shares after you have accumulated substantial percentages of the victim inthe open market. Then you offer substantial incentives to the existing share holders and management to part with their shares too until you have control over the comapany meaning voting rights to change the board. This is called green mail.
The remedies are 'poison pill' by the existing board which means they will reduce the cash tranche accumulated in the company by giving extra benifits to the employees and frivelous executive compensation so that the raider as the hostile take over artist is called cannot get his hands on them. This will discorage the guy from going further with the deal. They can also divest off some of the assets which also the raider must be looking to generate cash after gaining control.
Golden handshake described above as frivelous compensation to employees is another.
Companies can also start accumulating their shares from the market at the time the Raider is on so that he won't get to acquire voting rights to change board and fix a puppet board of his own for manipulation.

Answer 2

If you owned a majority of the shares, it would prevent a hostile takeover, since you would have enough votes on your won to vote it down.

Answer 3

it can avoid one by satisfying its shareholders and having a fair share or safe percentage of outstanding shares.