Scrip Bid

Scrip Bid

In Australia, a term for a buyout offer of a company made in stock instead of or in addition to cash. Scrip bids may be advantageous, as stock is taxed at a capital gains rate, which is lower, and losses on the stock may be used to offset other gains, reducing one's tax liability.
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Media reports also revealed that Anglo-Swiss miner Xstrata made contacts with Macarthur's three big shareholders - Citic Group, ArcelorMittal, and Posco - on an alternative cash or scrip bid.
The board of Dioro Exploration has recommended shareholders reject a two-for-one scrip bid from Ramelius Resources.
Newcrest offered a cash and scrip bid for Lihir last month, valued at $9.
M&A News Mineral Resources Ltd (ASX:MIN) has made a friendly scrip bid for iron ore explorer Polaris Metals (ASX:POL).