Warehousing

What is 'Warehousing'

Warehousing is 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.

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RELATED FAQS
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    Learn how tender offers are used in takeover attempts, and understand the difference between a hostile takeover and a friendly ... Read Answer >>
  2. Under what circumstances might a company decide to do a hostile takeover?

    Learn about why companies use a hostile takeover to gain control of another company, and understand the different methods ... Read Answer >>
  3. If a company offers a buyback of its shares, how do I decide whether to accept the ...

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  4. What is the difference between an acquisition and a takeover?

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  5. 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. ... Read Answer >>
  6. What usually happens to the price of a stock when a tender offer for shares of the ...

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