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Dawn Raid
(redirected from dawn raids)

   Also found in: Dictionary/thesaurus, Wikipedia, Hutchinson 0.04 sec.
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.


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Dawn raids are most commonly used for 'cartel busting'.
In October 2006 more than 100 officers carried out dawn raids on the Johnson clan and arrested 14 people.
On 15 October 2007, armed police conducted dawn raids at 50 houses and places of work across New Zealand/Aotearoa.
 
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