Warehousing

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DEFINITION of 'Warehousing'

1. A procedure whereby a company gradually builds up a holding of shares in a company it wishes to takeover in the future.

2. The process of storing goods within a storage facility.

INVESTOPEDIA EXPLAINS 'Warehousing'

1. The acquiring company "warehouses" small lots of shares by holding them under the name of a nominee. Companies use the warehousing technique of share acquisition when they wish to remain anonymous or are unable to make a public tender offer.

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