Takeover Bid

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.

Articles Of Interest

  1. What happens to the stock prices of two companies involved in an acquisition?

    When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. In general, the acquiring company's stock will fall while the target ...
  2. What is the difference between a merger and a takeover?

    In a general sense, mergers and takeovers (or acquisitions) are very similar corporate actions - they combine two previously separate firms into a single legal entity. Significant operational ...
  3. What is a stock-for-stock merger and how does this corporate action affect existing shareholders?

    First, let's be clear about what we mean by a stock-for-stock merger. When a merger or acquisition is conducted, there are various ways the acquiring company can pay for the assets it will receive. ...
  4. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.
  5. What Determines Your Cost Basis?

    In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ...
  6. Valeant Eyes Bausch & Lomb

    Canadian pharmaceutical company Valeant has made a name for itself through acquisitions. On May 27 it announced that it was buying Bausch & Lomb for $8.7 billion making it a global leader in ...
  7. Sears' Losses Widen In Q1 - Time To Merge With JC Penney?

    Sears Holdings delivered another brutal quarter May 23. CEO and majority owner Edward Lampert has his hands full trying to revive a truly broken department store. Rumor has Neiman Marcus and ...
  8. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
  9. If Investors Won't Buy Retailers, Private Equity Will!

    Private equity seems to think the apparel retailing sector is on sale
  10. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.
  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.
  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.
  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.
  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.
  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=d75dc4eddfff86b265674bf0a2ade4ee