Clandestine Takeover


DEFINITION of 'Clandestine Takeover'

An attempt to gain control over a company through secretive means. Clandestine takeover attempts are often launched against publicly-traded companies where individuals can acquire shares on the secondary market without disclosing their activities. This may be advantageous in situations where existing management would be hostile to a conventional takeover bid.

BREAKING DOWN 'Clandestine Takeover'

Ownership disclosure laws differ from country to country. In the United States, one is normally required to disclose ownership positions of more than 5%. Depending on the disclosure rules in force in a particular jurisdiction, there may be means available to gain effective control of even larger ownership stakes without triggering disclosure requirements.

  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. "Just Say No" Defense

    A strategy used by corporations to discourage hostile takeovers ...
  3. People Pill

    A defensive strategy to ward off a hostile takeover. The target ...
  4. Black Knight

    A company that makes a hostile takeover offer for a target company. ...
  5. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  6. Macaroni Defense

    An approach taken by a company that does not want to be taken ...
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