dawn raid

(redirected from dawn raids)
Also found in: Dictionary.

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 ?
British Transport Police launched a series of dawn raids in and around Merthyr Tydfil
Hundreds of officers from 26 police forces and the Serious Organised Crime Agency Soca) were involved in the dawn raids on Tuesday.
Abdelrahman Mohsen, a member of the 6 April Democratic Front, was arrested early on Friday morning along with four other men, following dawn raids by police.
In 2005, seven 15-year-old pupils at Drumchapel High School in Glasgow hit out in response to the detention of an asylum-seeking classmate in a dawn raid.
Simultaneous dawn raids were carried out at properties in Newcastle's East End and at Longbenton.
The Konkurransetilsynet had obtained a search warrant from the court for the dawn raids - what the Authority describes as unannounced inspections that can be carried out if violation of the Competition Act is suspected.
SWEEPING charges have been brought by police following a series of dawn raids on suspected drug dealers.
The intelligence driven drugs initiative took place on Friday morning in dawn raids that resulted in 14 arrests.
Summary: Egyptian security forces detained at least eight members of the opposition Muslim Brotherhood movement in dawn raids at their homes on Thursday
A family of refugees left traumatised after dawn raids on their Dudley home and subsequent detention have won pounds 150,000 compensation.
POLICE arrested nine people in a series of dawn raids.