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.

BREAKING DOWN '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.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. Warehouse-To-Warehouse Clause

    A clause in an insurance policy that provides for coverage of ...
  4. Warehouse Bond

    A type of financial protection that assures an individual or ...
  5. Warehouser's Liability Form

    A document that describes the obligations of a storage facility ...
  6. Warehouse Receipt

    A receipt used in futures markets to guarantee the quantity and ...
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    Even the simplest merger and acquisition (M&A) deals are challenging. It takes a lot for two previously independent enterprises ... Read Full Answer >>
  2. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>
  3. What are some common accretive transactions?

    The term "accretive" is most often used in reference to mergers and acquisitions (M&A). It refers to a transaction that ... Read Full Answer >>
  4. Are companies with high Book Value Of Equity Per Share (BVPS) takeover targets?

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