takeover bid

takeover bid
= offer to purchase
An offer made to the shareholders of a company by an individual or organization to buy their shares at a specified price in order to gain control of that company. In a welcome takeover bid the directors of the company will advise shareholders to accept the terms of the bid. This is usually known as a merger. If the bid is unwelcome, or the terms are unacceptable, the board will advise against acceptance. In the ensuing takeover battle, the bidder may improve the terms offered and will then usually write to shareholders outlining the advantages that will follow from the successful takeover. In the meantime bids from other sources may be made (see grey knight, white knight) or the original bidder may withdraw as a result of measures taken by the board of the target company (see poison pill). In an unconditional bid, the bidder will pay the offered price irrespective of the number of shares acquired, while the bidder of a conditional bid will only pay the price offered if sufficient shares are acquired to provide a controlling interest. Takeovers in the UK are subject to the rules and disciplines of the City Code on Takeovers and Mergers

Accounting dictionary. 2014.

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  • takeover bid — / teɪkəυvə bɪd/ noun an offer to buy all or a majority of the shares in a company so as to control it ● They made a takeover bid for the company. ● He had to withdraw his takeover bid when he failed to find any backers. ● Share prices rose… …   Dictionary of banking and finance

  • takeover bid — offer to purchase An offer made to the shareholders of a company by an individual or organization to buy their shares at a specified price in order to gain control of that company. In a welcome takeover bid the directors of the company will… …   Big dictionary of business and management

  • takeover bid — / teɪkəυvə bɪd/ noun an offer to buy all or a majority of the shares in a company so as to control it ● They made a takeover bid for the company. ● He had to withdraw his takeover bid when he failed to find any backers …   Marketing dictionary in english

  • takeover bid — noun an offer to buy shares in order to take over the company • Hypernyms: ↑tender offer • Hyponyms: ↑two tier bid, ↑any and all bid * * * takeover bid, an offer to buy out another company; tender offer …   Useful english dictionary

  • Takeover Bid — A type of corporate action in which an acquiring company makes an offer to the target company s shareholders to buy the target company s shares in order to gain control of the business. Takeover bids can either be friendly or hostile. Some… …   Investment dictionary

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  • takeover bid — noun An attempt to buy a controlling share in a business …   Wiktionary

  • takeover bid — n. (in business) offer to buy shares for the purposes of taking over the company …   English contemporary dictionary

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