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 ?
POLICE officers swooped on homes across Coventry in a series of dawn raids in the hunt for football hooligans who brought terror to a city neighbourhood.
SCOTLAND'S largest teaching union yesterday called for an end to dawn raids on failed asylum seekers.
That's what's wrong about dawn raids - the price the kids pay.
A man was injured as knife-wielding robbers carried out a dawn raid on a pub.
POLICE hunting a teenage robber staged a dawn raid on the wrong flat - and woke up a petrified great granny aged 88.
Police have seized crack cocaine worth pounds 10,000 following a dawn raid in the Moseley area of Birmingham.
The vehicle - parts of which have been sent to Dublin for further tests - was seized during a dawn raid on the house of a local man in his 20s on Tuesday.
The 34-year-old was detained at a house in Dundee after a joint dawn raid by officers from Tayside and Lothian and Borders police forces.
Mohammed Abdul Kahar, 23, who was shot during the raid, and 20-year-old Abul Koyair, were held for a week after being detained in a dawn raid in east London, last Friday.
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.
Cop and MoD workers also held in dawn raid FIVE senior journalists at The Sun newspaper were arrested in dawn raids on their homes yesterday on suspicion of illegally paying public officials.
Summary: TEHRAN (FNA)- Tens of people turned out outside a Sydney court in support of 14 Occupy Sydney protesters who are facing charges after Australian police repressed them during a dawn raid in October.