takeover target

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Takeover target

A company that is the object of a takeover attempt, friendly or hostile.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

takeover target

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The main theoretical contribution of this paper stems from extending agency logic to the study of pay and target firm attributes.
On the other hand, in the mergers and acquisitions market, target firms are dealing with much more sophisticated and experienced acquirers.
For example, if the seller plans to undertake a hostile takeover of the target firm. In the previous case, we review the change in M&A pricing due to changes in the business cycle.
In addition, regressions were run for both acquiring and target firms.
target firms by Japanese bidders between 1975 and 1988 and reports that M&A announcements tended to increase stock prices for both the U.S.
In the global insurance industry, Cummins, Klumpes, and Weiss (2015) examined the value created by M&As between 1990-2006 and found that M&As increased the value of target firms significantly M&As also increased the value of acquirer firms slightly, but only if they were acquiring other insurance firms.
Pruitt and Friedman (1986) applied a time-series research to study the influence of 21 consumer boycott announcements on target firms' stockholders' wealth and found that boycott announcements resulted in a statistically significant reduction in target firms' stock prices and the overall market value of these firms declined by an average greater than $120 million.
In this section, we examine abnormal returns and offer premiums accrued to the target firms' stock around ODA, HODA, and DA.
Recommendations: Evaluate credentials of the target firm's personnel.
They find that target firms indeed are constrained prior to acquisition, and that the constraints are lessened after the firms are acquired.
However, in marked contrast, more agency problems are observed in the case of unlisted target firms in India primarily due to their weak governance norms and minority public shareholding.
Monday also saw the announcement of a flurry of M&A activities and the share of the target firms jumped.