Takeover Bid

Agreed Bid
An agreed bid is a takeover bid that is supported by a majority of the shareholders of the target company, whereas a hostile bid is not welcomed by the majority of the shareholders of the target company.
Assented Stock
Assented stock refers to a security, typically an ordinary share, where the owner has agreed to the terms of a takeover bid. Different prices may be offered for assented and non-assented stock during takeover negotiations.
Bid
In finance, a bid refers to the price or yield at which a buyer indicates they are willing to purchase a financial obligation. It can also signify an offer by one company to purchase the share capital of another.
Crown Jewel Option
A Crown Jewel Option is a defensive strategy used by companies to prevent hostile takeovers by giving a partner or friendly company the right to buy some of its best assets at a favorable price if a takeover were successful.
Dawn Raid
An aggressive strategy by a company or investor to acquire a substantial equity stake in another company by purchasing available shares immediately as the stock market opens, often catching the target company off guard.
Takeover Bid
A comprehensive overview of the concept of a takeover bid in the context of corporate acquisitions, including explanations of types, outcomes, examples, related terms, and resources for further study.
Target Company
A company that is the subject of a takeover bid by another company. Understanding the dynamics and implications of being a target company is crucial for shareholders, managers, and potential acquirers.
Warehousing
The storage of goods in a warehouse or the act of building up a holding of shares in a company prior to making a takeover bid by buying small lots of shares and 'warehousing' them in the name of nominees.
White Knight
In corporate finance, a white knight refers to a person or firm that makes a welcomed takeover bid for a company on improved terms, aiming to replace an unacceptable and unwelcome bid from another party, known as a black knight. This tactic helps the target company to find a more suitable and favorable owner.

Accounting Terms Lexicon

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