Definition

1. Noun:
   • An offer to purchase a controlling quantity of a company's shares: A "takeover bid" is a formal, public proposal made by an individual, group, or another company to buy enough shares from the current shareholders of a target company to gain control of it.

Usage

• A "takeover bid" is typically made directly to the shareholders of the target company, often at a price above the current market value to encourage acceptance.
• It is a key mechanism in corporate mergers and acquisitions. The bid can be friendly (agreed with the target's management) or hostile (opposed by the target's management).

Examples

• Noun:
  • The board is reviewing the unsolicited takeover bid from its largest competitor.
  • Shareholders must decide whether to accept the takeover bid by the deadline.
  • The company defended itself against the hostile takeover bid by finding a "white knight" investor.

Advanced Usage

• "to launch/make a takeover bid": to formally initiate the offer.
  • The investment group announced it would launch a takeover bid for the struggling retailer.
• "to fend off/repel a takeover bid": to successfully defend against an unwanted bid.
  • The management's strategy successfully fended off the takeover bid.

Variants and Related Words

• Takeover (n): The act of gaining control of a company. A "takeover bid" is the offer that leads to a "takeover."
• Bid (n): An offer to pay a specified price for something. In this context, it is an offer for shares.
• Tender offer: A specific type of takeover bid where the bidder offers to purchase shares directly from shareholders at a stated price.

Synonyms

• Acquisition offer: An offer made with the intent to acquire control.
• Buyout offer: An offer to purchase a controlling interest.

Related Phrases

• Hostile takeover bid: A takeover attempt that is strongly resisted by the target company's board of directors.
• Friendly takeover bid: A takeover proposal that is endorsed by the target company's management and board.

Noun

1. an offer to buy shares in order to take over the company