TAKEOVER BID Meaning and
Definition
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A takeover bid refers to a proposal made by one company (known as the acquirer or bidder) to acquire all or a majority of the shares of another company (known as the target or acquired company). It is an act of attempting to gain control over a target company by purchasing its shares from its existing shareholders. In essence, a takeover bid represents a significant transaction where one company aims to assume control, ownership, and management of another.
A successful takeover bid allows the acquiring company to gain control of the target company's assets, operations, and decision-making powers, thereby influencing its strategic direction and overall management. Takeover bids can be friendly, in which the target company's management and board of directors support the acquisition, or hostile, where the target company's management opposes the bid.
Takeover bids can occur for various reasons, such as strategic expansion, market share consolidation, gaining access to new technologies, or eliminating competition. The bidder may offer a premium on the current market price of the target company's shares to entice shareholders to agree to the transaction.
Regulatory bodies often oversee takeover bids to ensure compliance with relevant rules and regulations. Some jurisdictions have specific laws governing the process and protection of shareholders' interests during a takeover bid, aiming to maintain transparency and fairness in such transactions.
Common Misspellings for TAKEOVER BID
- rakeover bid
- fakeover bid
- gakeover bid
- yakeover bid
- 6akeover bid
- 5akeover bid
- tzkeover bid
- tskeover bid
- twkeover bid
- tqkeover bid
- tajeover bid
- tameover bid
- taleover bid
- taoeover bid
- taieover bid
- takwover bid
- taksover bid
- takdover bid
- takrover bid
Etymology of TAKEOVER BID
The word "takeover bid" is a compound term formed from the combination of two words: "takeover" and "bid".
1. Takeover: The word "takeover" originated from the combination of the verb "take" and the noun "over". "Take" comes from the Old English word "tacan", which means "to grasp, seize, or get possession of". "Over" derives from the Old English word "ofer", indicating "above" or "across". By combining these two words, "takeover" was formed in the 1920s. In the context of business, a takeover refers to gaining control or possession of a company or organization by acquiring a significant number of its shares.
2. Bid: The term "bid" is derived from the Middle English word "beden" or "boden", which means "to offer" or "to command".
Similar spelling words for TAKEOVER BID
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