takeover target

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Related to Target Firms: target company

Takeover target

A company that is the object of a takeover attempt, friendly or hostile.

Takeover Target

A publicly-traded company that is the object of a takeover, especially, but not necessarily, a hostile takeover. That is, another company is interested in buying the takeover target, often by buying its shares with the intent of obtaining a majority stake without the authorization of its board of directors. An acquiring company identifies takeover targets based on a variety of factors, including share price and growth potential; it may buy up to 5% of the takeover target without publicly disclosing its intentions. A takeover target is also called a target company.

takeover target

References in periodicals archive ?
We document significant differences in executive compensation structures between acquiring and target firms before the merger.
The sample comprises acquiring and target firms involved in acquisitions occurring during the period 1979 through 1988 (see Table 1).
Do institutional investors, through their stock ownership in target firms, facilitate, hinder or play no role in takeovers?
Our focus on the effect of Supreme Court rulings on target firms rather than (or in addition to) the effect on acquiring firms is based on a large body of literature that indicates that merger announcements do not have a statistically significant effect on the value of the acquiring firms, on average.
Target firms need not possess a synergy for this result to hold; they merely need inferior management.
Studies examining specific resistance tactics indicate that some defensive responses may increase the value of target firms (Jarrell, 1985), whereas others appear to reduce their value (Bradley & Wakeman, 1983; Dann & DeAngelo, 1983; Mikkelson & Ruback, 1988).
Then, a hundred games are played by different acquirers and target firms, which are also picked at random from the pool of thousand players.
In addition, regressions were run for both acquiring and target firms.
They also investigate the replacement of top management (CEO or president) in target firms and conclude that replacing management at target firms is not a major objective of acquisition.
We find that target firms experience an average of +18.
Risks: Professional liability claims are more likely if a target firm does not value quality controls.