Takeover Bid


DEFINITION of 'Takeover Bid'

A type of corporate action in which an acquiring company makes an offer to the target company's shareholders to buy the target company's shares in order to gain control of the business. Takeover bids can either be friendly or hostile.

BREAKING DOWN 'Takeover Bid'

Some examples of takeover bids include:

Two-Tier Bid: The acquiring company is willing to pay a premium above and beyond the share's price in order to convince shareholders to sell their shares.

Any-and-All Bid: The acquiring company offers to buy any of the target firm's outstanding shares at a specific price.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. Unsolicited Bid

    An offer made by an individual, company or group of investors ...
  4. Self-Tender Defense

    A form of takeover defense against a hostile bid, in which the ...
  5. Kamikaze Defense

    A type of takeover defense mechanism sometimes resorted to by ...
  6. Hostile Takeover

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