dawn raid


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Related to dawn raid: hostile takeover

Dawn raid

A term of British origin used to describe the purchase of all available shares of a target company at the market's open by a raider. A dawn raid is a surprise technique that allows the raider to gain a substantial share of the target company before the target company knows what is happening.

Dawn Raid

In a hostile takeover, the act of an acquiring firm or, more rarely, an individual investor buying a substantial amount of a target firm's stock at the beginning of the trading day. One perpetrates a dawn raid to take the target firm by surprise; by not making a formal offer to buy the company before the dawn raid, the acquiring firm does not give the target firm the chance to enact an antitakeover measure that would increase the cost of the takeover. Regulations allow an acquiring firm to buy only 15% of the target firm in a dawn raid; many acquiring firms thus make formal offers after they have a significant stake in the target firm.

dawn raid

a situation in which a potential TAKEOVER bidder for a company buys a substantial shareholding in the target company at current market prices, often through intermediaries (to disguise the identity of the bidder). This shareholding can then be used as a platform for a full takeover bid for all the shares at a stated offer price. In the UK, company law provisions on DISCLOSURE OF SHAREHOLDINGS, requiring shareholders with more than 3% of the shares in a public company to declare such shareholdings to the directors of that company, have made it more difficult to mount a dawn raid. See TAKEOVER BID, CITY CODE ON TAKEOVERS AND MERGERS.

dawn raid

a situation in which a potential TAKEOVER bidder for a company buys a substantial shareholding in the target company at current market prices, often through intermediaries (to disguise the identity of the bidder). This shareholding can then be used as a platform for a full takeover bid for all the shares at a stated offer price. See TAKEOVER BID, CITY CODE.
References in periodicals archive ?
The haul was discovered as police launched a series of dawn raids as part of Night Owl, a crackdown on burglars.
The ECtHR held that if, during a dawn raid, companies are unable to halt the seizure of out-of-scope or privileged documents, then they should at least have an effective judicial remedy to seek the removal of such documents from the file.
One day Agnesa, who was in the year below me, was taken away in a dawn raid.
Protesters dressed up in tents and carrying sleeping bags and banners stood outside Downing Centre Local Court to protest against the arrests made during a dawn raid in October.
1 September 2010 - The Norwegian Competition Authority (Konkurransetilsynet) on Monday carried out various dawn raids at facilities owned by various operators of the Norwegian poultry market.
Young fans around the country love the music and merchandise produced by Dawn Raid Entertainment, a Papatoetoe company which has recorded a unique blend of locally produced music and is also racking up wins on the wider business front.
Two luxury detached rented properties were targeted in a dawn raid yesterday in Crofthill Close, Dalry, Ayrshire.
But Chinese firm Chinalco and United States company Alcoa, which jointly launched a dawn raid on Rio's shares on Friday, are understood to be considering increasing their stake in the Anglo-Australian miner or even launching a full bid.
The pounds 7 billion dawn raid, thought to be one of the biggest in UK corporate history, comes just days before rival BHP Billiton faces a deadline to launch a formal takeover bid for the Anglo-Australian miner.
Members of the Dawn Raid Watch today stood outside Northum-bria House on Norfolk Street in North Shields, where staff from the Borders and Immigration Agency work.
Author Sarah Helm - married to Jonathan Powell - used the phrase to condemn a dawn raid in January on the home of former Downing Street adviser Ruth Turner.