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.

Look at other dictionaries:

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  • 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 — Mktg an attempt by one company to acquire another. A takeover bid can be made either by a person or an organization, and usually takes the form of an approach to shareholders with an offer to purchase. The bidding stage is often difficult and… …   The ultimate business dictionary

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  • takeover bid — An attempt by an outside corporation or group, usually called the aggressor or insurgent, to wrest control away from incumbent management of target corporation. A takeover attempt may involve purchase of shares, a tender offer, a sale of assets… …   Black's law dictionary

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

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