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Takeover Bid

Definition

Takeover Bid was a BBC Television primetime entertainment quiz programme that aired on BBC1 from 26 May 1990 until 15 July 1991. The programme was hosted by Bruce Forsyth and assisted by Claire Sutton.

What is a 'Takeover Bid'

A takeover bid is a type of corporate action in which an acquiring company makes an offer to the target company's shareholders to buy the target company's shares in order to gain control of the business. Takeover bids can either be friendly or hostile.

Explaining 'Takeover Bid'

Some examples of takeover bids include:

Two-Tier Bid: The acquiring company is willing to pay a premium above and beyond the share's price in order to convince shareholders to sell their shares.

Any-and-All Bid: The acquiring company offers to buy any of the target firm's outstanding shares at a specific price.


Further Reading


Agency theory, managerial welfare, and takeover bid resistance
www.jstor.org [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

Disclosure laws and takeover bidsDisclosure laws and takeover bids
www.jstor.org [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

The role of hostile takeovers in corporate governanceThe role of hostile takeovers in corporate governance
www.tandfonline.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

The information effects of takeover bids and resistanceThe information effects of takeover bids and resistance
www.sciencedirect.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

Takeovers: Folklore and scienceTakeovers: Folklore and science
papers.ssrn.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

Overpaying in corporate takeovers: The winner's curseOverpaying in corporate takeovers: The winner's curse
www.tandfonline.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

Financing and takeoversFinancing and takeovers
www.sciencedirect.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

The economic consequences of financial restatements: Evidence from the market for corporate controlThe economic consequences of financial restatements: Evidence from the market for corporate control
meridian.allenpress.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

The hubris hypothesis of corporate takeoversThe hubris hypothesis of corporate takeovers
www.jstor.org [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …

Shareholder wealth effects of European domestic and cross‐border takeover bidsShareholder wealth effects of European domestic and cross‐border takeover bids
onlinelibrary.wiley.com [PDF]
… were asked to leave their jobs reports that 32% were let go during takeovers, mergers, and … cite the existence of a foreign bidder as a reason for blocking a takeover attempt.3 … offer and the circumstances surrounding it (most notably, the target man- agement's reaction to the bid) …



Q&A About Takeover Bid


What does hostile mean when referring to takeovers ?

Hostile means that one party wants to take over another without approval from the other party .

What does "friendly" mean in regards to a takeover bid?

Friendly means that both companies agree on terms of the deal.

What happens if there is no agreement between parties on whether to accept or reject an offer?

If there is no agreement between parties on whether to accept or reject an offer, then this results in either hostile, reverse or back-flip takeovers .

What does a takeover usually involve?

A takeover usually involves the purchase of one company by another.

Why might an acquiring company make a takeover bid for the target firm's shares?

To gain control of the business.

How do you finance a takeover?

Financing a takeover often involves loans or bond issues which may include junk bonds as well as simple cash offers. It can also include shares in the new company.

When would you use reverse takeovers ?

Reverse takeovers occur when smaller companies merge with larger ones .

What are some examples of takeover bids?

Two-tier bid, any and all bid.

Who are shareholders?

Shareholders are individuals who own shares in companies.

What is an ideal world for a board of directors?

An ideal world for a board of directors is when it feels that accepting an offer serves its shareholders better than rejecting it.

Who is involved in a takeover?

The management of the target company, the acquirer and shareholders are all involved in a takeover.

What is a takeover bid?

A takeover bid is an offer made by a company to purchase another company.

Why might someone want to do back-flip acquisitions ?

Back-flip acquisitions occur when large companies buy out smaller ones and then sell off their assets .

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