DEFINITION of 'Clandestine Takeover'

An attempt to gain control over a company through secretive means. Clandestine takeover attempts are often launched against publicly-traded companies where individuals can acquire shares on the secondary market without disclosing their activities. This may be advantageous in situations where existing management would be hostile to a conventional takeover bid.

BREAKING DOWN 'Clandestine Takeover'

Ownership disclosure laws differ from country to country. In the United States, one is normally required to disclose ownership positions of more than 5%. Depending on the disclosure rules in force in a particular jurisdiction, there may be means available to gain effective control of even larger ownership stakes without triggering disclosure requirements.

  1. Hostile Takeover Bid

    A hostile takeover bid occurs when an entity attempts to take ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. Target Firm

    A target firm is an attractive business for a merger or acquisition ...
  4. Hostile Bid

    A specific type of takeover bid that is presented directly to ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover ...
  6. Whitemail

    A strategy that a takeover target uses to try and thwart an undesired ...
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  1. What happens to the shares of a company that has been the object of a hostile takeover?

    Learn about the effect on the share price of companies that are targets of hostile takeovers, which are tactics used by famed ... Read Answer >>
  2. How can a company buy back shares to fend off a hostile takeover?

    Learn about why a business might use a stock buyback to thwart a hostile takeover attempt by reducing its total assets and ... Read Answer >>
  3. A Hostile Takeover vs. Friendly Takeover

    Learn about the difference between a hostile takeover and a friendly takeover, and understand how proxy fights and tender ... Read Answer >>
  4. What's the difference between a merger and a hostile takeover?

    Understand the difference between a merger and a hostile takeover, including the different ways one company can acquire another, ... Read Answer >>
  5. If a company offers a buyback of its shares, how do I decide whether to accept the ...

    Learn why it may often be in the best interest of a shareholder to accept a tender offer made at a premium to the market ... Read Answer >>
  6. How effective is a poison pill defense against a hostile takeover?

    Learn about the different types of poison pill strategies that target companies use to prevent hostile takeovers, and understand ... Read Answer >>
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