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 ?
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.
She added: "We must stop these inhuman dawn raids."
Yasser al-Siri, aged 38, was held yesterday following a dawn raid by Scotland Yard Anti-Terrorist Branch officers at his home in west London.
He turned up at his busy school yesterday to find that yet another of his pupils had been targeted by immigration officials in a dawn raid.
The debate followed an outcry over a dawn raid on the Vucaj family in Glasgow said to have involved 16 officers in body armour and the hand- cuffing of a 17-year-old.
I WAS truly proud to participate in a dawn raid against the "dawn raiders" this week.
Officers who carried out a dawn raid on a house in Dawes Close, Coventry on Wednesday, found hundreds of DVDs, believed to have been snatched from commercial premises in Swift Valley industrial estate, Rugby.
EVERY November we remember those who gave their lives fighting the Nazi jack-boot brigade who were masters of the dawn raid, dragging innocents from their homes.
OJ SIMPSON has denied he was involved in drugs or money-laundering after a dawn raid by police investigating an ecstasy ring.
Five years ago there was the notorious dawn raid on several families in the Orkneys on alleged witchcraft procedures.
DEMONSTRATORS yesterday carried out their own dawn raid on Scotland's immigration service headquarters.