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. |
|
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. |
Related Definitions
Articles Of Interest
-
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 ... -
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 ... -
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. ... -
The Basics Of Mergers And Acquisitions
Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work. -
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 ... -
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 ... -
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 ... -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. -
If Investors Won't Buy Retailers, Private Equity Will!
Private equity seems to think the apparel retailing sector is on sale -
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.
Free Annual Reports