takeover

Takeover

A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.

Notes:

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

See also: Acquisition, Acquisition Premium, Busted Takeover, Enterprise Value, Hostile Takeover, Lobster Trap, Management Buyout (MBO), Merger, Sandbag, Saturday Night Special, Scorched Earth Policy, Sleeping Beauty, Suicide Pill, Takeunder, Unbundling

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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.