Unsolicited Bid

DEFINITION of 'Unsolicited Bid'

An offer made by an individual, company or group of investors to purchase a company that was not actively seeking a buyer. The bid is a result of the unsolicited bid submitter's initiative and not due to any request made by the bid-upon company. Unsolicited bids may also sometimes be referred to as hostile bids if the company being bid for doesn't want to be acquired.

BREAKING DOWN 'Unsolicited Bid'

An unsolicited bid to purchase a company that was not intending to sell may be followed by other unsolicited bids as the news travels. These other bids may up the purchase price and start a bidding war or takeover fight. Unsolicited bidding can occur when a company wants to purchase another company in order to control its market share, profit from its expected growth, have access to proprietary technology or limit competitors from taking advantage of these situations.

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RELATED FAQS
  1. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  2. What do the numbers that follow the bid and ask numbers in stock quotes represent? ...

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
  3. How do day traders capture profits from the difference between bid and ask prices?

    Discover how day traders capture profits from the difference between bid and ask spreads. These spreads blow out during volatile ... Read Answer >>
  4. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
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    I am new to stock buying and I was just wondering that if I buy stocks after trading hours (normally 4.30 EST for NASDAQ) ... Read Answer >>
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    When a firm makes an official bid to take over a target company, a legal offer is created. The firm making the offer becomes ... Read Answer >>
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