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Takeover Bid

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Dictionary Says

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.
Investopedia Says

Investopedia explains '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. 

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    Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
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  • Acquisition

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    • Hostile Takeover

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    • Tender Offer

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    • Golden Parachute

      Lucrative benefits given to top executives in the event that a company is taken over by another firm, resulting in the loss of their job. Benefits include items such as stock options, ...
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    • Self-Tender Defense

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      A type of takeover defense mechanism sometimes resorted to by a company that is the target of a hostile bid. Kamikaze defense involves reshaping the target company - either by divesting ...
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