dawn raid

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"We have been carrying out enquiries into concerns around drug dealing in the area for a number of weeks and they culminated in these dawn raids.
Fourteen people arrested following dawn raids in Rochdale on Thursday.
More than 180 police officers were involved in dawn raids across Blaenau Gwent and Caerphilly yesterday gwent police
"Those arrested in today's dawn raids are suspected of being involved in organised crime, and investigations continue."
Two village chiefs here were allegedly caught in possession of illegal drugs and firearms during a Friday dawn raid in their houses.
Police carried out dawn raids on football violence suspects across Wirral
Swiss authorities arrested several football officials in a fresh wave of dawn raids early on December 3, 2015 in a dramatic widening of the FIFA corruption scandal, the New York Times reported.
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.
And the latest three were picked up yesterday when two Blues fans and a Wolves supporter were arrested in a series of dawn raids for failing to comply with the demand.
Yeddyurappa, facing political isolation within the BJP, compounded on Wednesday with the CBI conducting pre- dawn raids at his residences and offices in Bangalore and Shimoga in connection with illegal mining in the state during his tenure.