Saturday Night Special

AAA

DEFINITION of 'Saturday Night Special'

An obsolete takeover strategy where one company attempted a takeover of another company by making a sudden public tender offer, usually over the weekend. This merger and acquisition (M&A) technique was popular in the early 1970s when the Williams Act required only seven calendar days between the time that a tender was publicly announced and its deadline. Catching the target company off guard and over the weekend, effectively reducing its time for a response, often afforded the acquiring company an advantage.

INVESTOPEDIA EXPLAINS 'Saturday Night Special'

A tender offer is basically an attempt to takeover control of a company by asking shareholders to sell their shares at a specified price (usually above market). If enough shareholders sell their shares, the takeover is complete. The Saturday Night Special was effective when the Williams Act required a minimum of seven days between the public announcement of the tender and its deadline. When the time period was extended to 20 days, this technique failed to be the quick strike it was originally intended to be. In addition, acquisitions of 5% or more of equity now need to be disclosed to the Securities Exchange Commission (SEC).

RELATED TERMS
  1. White-Shoe Firm

    The most prestigious firms in professions such as law, investment ...
  2. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  3. Black Knight

    A company that makes a hostile takeover offer for a target company. ...
  4. Dawn Raid

    When a firm or investor buys a substantial number of shares in ...
  5. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
  6. Sleeping Beauty

    A company that is considered prime for takeover, but has not ...
Related Articles
  1. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. Finding Success Where Indicators Fail
    Active Trading

    Finding Success Where Indicators Fail

  3. Trademarks Of A Takeover Target
    Bonds & Fixed Income

    Trademarks Of A Takeover Target

  4. Pinpoint Takeovers First
    Options & Futures

    Pinpoint Takeovers First

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center