What is a Takeover Bid?

Definition:

A bid where an acquiring company makes an offer to the Target’s shareholders to buy the Target’s shares in order to gain control of the Target. Takeover Bids can be made either with the Target’s board (who recommend Target shareholders to accept the offer) or without it (so that the Target’s board recommend shareholders not accept the offer). The latter is referred to as a Hostile Takeover.

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