HOSTILE BID Meaning and
Definition
-
A hostile bid refers to an unsolicited attempt made by one company to acquire the shares of another company without the consent or cooperation of the target company's board of directors. It is a takeover bid that is deemed aggressive and confrontational in nature, as it disregards the preferences of the target company's management.
In a hostile bid scenario, the initiating company often directly approaches the shareholders of the target company, seeking their endorsement to sell their shares. This approach bypasses the normal channels of negotiation and cooperation between companies, putting both the acquiring and target entities into a competitive and potentially hostile situation.
Typically, a hostile bid occurs when the acquirer believes that the target company is undervalued or possesses valuable assets or market share that would be beneficial to the acquiring company's growth strategy. This aggressive attempt to gain control, however, is often met with resistance from the target company's management, as they wish to protect their interests and potentially negotiate better terms or consider alternative offers.
Hostile bids are subject to legal and regulatory requirements, and the bid may need to be approved by relevant authorities, such as the securities and exchange commission in the respective country. Additionally, in many cases, hostile bids can result in extended and contentious battles between the acquiring and target companies, leading to increased costs, uncertainty, and potential disruption to business operations.
Common Misspellings for HOSTILE BID
- gostile bid
- bostile bid
- nostile bid
- jostile bid
- uostile bid
- yostile bid
- histile bid
- hkstile bid
- hlstile bid
- hpstile bid
- h0stile bid
- h9stile bid
- hoatile bid
- hoztile bid
- hoxtile bid
- hodtile bid
- hoetile bid
- howtile bid
- hosrile bid
- hosfile bid
Etymology of HOSTILE BID
The etymology of the word "hostile bid" can be traced back to the individual words that make it up.
1. Hostile: The word "hostile" originates from the Latin word "hostilis", which means "of an enemy or an adversary". It evolved from the Latin word "hostis", meaning "enemy". The term gradually made its way into English in the 16th century, signifying antagonistic or unfriendly behavior.
2. Bid: The word "bid" has its roots in the Old English word "biddan", which means "to ask or command". It later developed to represent offering a price in an auction or business transaction. The term "bid" has been used in this sense since the early 17th century.
