Hostile Takeover Bid

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Dictionary Says

Definition of 'Hostile Takeover Bid'

An attempt to take over a company without the approval of the company's board of directors. When vying for control of a publicly-traded firm, the acquirer attempting the hostile takeover may proceed to bypass board approval in one of two ways typically.

First, the acquirer may attempt to buy enough shares of the company in order to acquire a controlling interest in the firm. Second, the acquirer may instead try to persuade existing shareholders to vote in a new board which will accept the takeover offer.

Investopedia Says

Investopedia explains 'Hostile Takeover Bid'

It is often difficult to acquire a controlling interest in a publicly-traded firm. Such a bid requires a large amount of capital and a good strategy to avoid bidding up the price too high. There are two main tactics employed to acquire a controlling interest. First, the acquirer may make a tender offer to the company's shareholders, pledging to buy shares of the company for a set price above the prevailing market price. Alternatively, an acquirer may wish to accumulate shares by buying directly in the market. However, this buying may cause a sharp increase in the stock price.

In either case, the acquirer must pay a premium over the market price to gain control over the firm.

Search results for

'Hostile Takeover Bid'

  • When is a takeover bid legally canceled?

    http://www.investopedia.com/ask/answer/07/bidcancelled.asp
    ... Feedback Feedback. When is a takeover bid legally canceled? When a firm makes an
    official bid to take over a target company, a legal offer is created. ...

  • Corporate Takeover Defense: A Shareholder's Perspective

    http://www.investopedia.com/articles/stocks/08/corporate-takeover-defense.asp
    ... to vote on such issues as the acceptance or rejection of a takeover bid. ... prime example
    of how shareholders can lose out even while avoiding a hostile takeover. ...

  • What is a staggered board?

    http://www.investopedia.com/ask/answers/05/staggeredboard.asp
    ... According to the Harvard study, in the nine months after a hostile takeover bid
    was announced, shares in companies with staggered boards increased only 31.8 ...

  • Mergers And Acquisitions: Understanding Takeovers

    http://www.investopedia.com/articles/01/050901.asp
    ... On the other hand, hostile takeovers often result in the management being fired ... dilute
    the shares held by the bidder and make the takeover bid more difficult ...

  • Casey’s Justifying Its Independence

    http://stocks.investopedia.com/stock-analysis/2012/Caseys-Justifying-Its-Independence-CASY-PTRY-KR-SUSS0312.aspx
    ... Backing out charges in last year's quarter due to spending to fend off a hostile
    takeover bid, management estimated that year-over-year third quarter earnings ...

  • Semiconductors On The Mend

    http://stocks.investopedia.com/stock-analysis/2009/Semiconductors-On-The-Mend-XSD-INTC-TSM-BRCM-ELX-TXN0615.aspx
    ... the upside. Broadcom (Nasdaq: BRCM) has made a $764 million hostile takeover
    bid for competitor Emulex (NYSE: ELX). The companies ...

  • Ways To Play The Upcoming Oil Resurgence

    http://stocks.investopedia.com/stock-analysis/2009/Ways-To-Play-The-Upcoming-Oil-Resurgence-PTR-TOT-PCZ0428.aspx
    ... oil needs. Expanding Companies UTS Energy Corporation (TSX:UTS) has recently
    seen a hostile takeover bid from Total. On April 13 ...

  • Trade Takeover Stocks With Merger Arbitrage

    http://www.investopedia.com/articles/stocks/06/mergerarbitrage.asp
    ... business is a risky one in which takeover deals can ... Hostile bids are also more likely
    to fail than friendly ... Another company might make a bid for Delicious, in ...

  • 3 Pharma Overachievers

    http://stocks.investopedia.com/stock-analysis/2010/3-Pharmaceutical-Overachievers-NPSP-PPH-IDIX-OSIP-ALPMF-QQQQ0507.aspx
    ... The company's stock has appreciated by 90% YTD, mostly due to a recent hostile takeover
    bid by Japanese drug super heavyweight, Astellas Pharma, Inc. ...

  • Peabody Tries Again To Get Macarthur Coal

    http://stocks.investopedia.com/stock-analysis/2011/Peabody-Tries-Again-To-Get-Macarthur-Coal-BTU-MT-PKX-VALE-TCK-ACI-PVR0714.aspx
    ... bid, investors should remember that the Australian dollar has been quite strong
    since the last bid. ... (For related reading, see Corporate Takeover Defense: A ...

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