Takeover (redirected from Hostile take over)

Takeover

General term referring to transfer of control of a firm from one group of shareholders to another group of shareholders. Change in the controlling interest of a corporation, either through a friendly acquisition or an unfriendly, hostile, bid. A hostile takeover (with the aim of replacing current existing management) is usually attempted through a public tender offer.

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Acquisition

An investment in which a company or person buys a publicly-traded company, or, more commonly, most of the shares in that company. For example, if Corporation A buys 51% or more of Corporation B, then Corporation B becomes a subsidiary of Corporation A, and the activity is called an acquisition. A single investor may buy out a publicly-traded company; one calls this "going private." Acquisitions occur in exchange for cash, stock, or both. Acquisitions may be friendly or hostile; a friendly acquisition occurs when the board of directors supports the acquisition and a hostile acquisition occurs when it does not. See also: Antitakeover measure.

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takeover

The acquisition of controlling interest in a firm. Although the term is often used to refer to acquisition by a party hostile to the target's management, many takeovers are friendly. See also friendly takeover, raider, unfriendly takeover.

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Takeover

What Does Takeover Mean?

A corporate action in which an acquiring company makes a bid for another company. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares. When the targeted company refuses to be purchased, the takeover is considered a hostile takeover.

Investopedia explains Takeover

A welcome takeover usually is a favorable and friendly takeover. Friendly takeovers generally go smoothly because both companies consider this a positive situation. In contrast, an unwelcome or hostile takeover can get downright nasty!

Related Terms:
• Enterprise Value
• Hostile Takeover
• Leveraged Buyout
• Merger
• Poison Pill