Takeover (redirected from Hostile bid)

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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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