Hostile Takeover

What Does Hostile Takeover Mean?
A takeover attempt that is strongly resisted by the target firm.

Investopedia explains Hostile Takeover
Hostile takeovers are usually bad news, as the employee morale of the target firm can quickly turn to animosity against the acquiring firm

Black Knight

What Does Black Knight Mean?
A company that makes a hostile takeover offer on a target company.

Investopedia explains Black Knight
An allusion to the fairytale villains, this term demonstrates how a targeted company sees its adversary. Fairytale black knights are associated with kidnapping princesses, slaying peasants, burning villages, and generally having unpleasant personalities

White Knight

What Does White Knight Mean?
A company that makes a friendly takeover offer to a target company that is being faced with a hostile takeover from a separate party.

Investopedia explains White Knight
The knight in shining armor gallops to the rescue!

Lady Macbeth Strategy

What Does Lady Macbeth Strategy Mean?
A corporate-takeover strategy with which a third party poses as a white knight to gain trust, but then turns around and joins with unfriendly bidders.

Investopedia explains Lady Macbeth Strategy
Lady Macbeth, one of Shakespeare's most frightful and ambitious characters, devises a cunning plan for her husband, the Scottish general, to kill Duncan, the King of Scotland. The success of Lady Macbeth's scheme lies in her deceptive ability to appear noble and virtuous, and thereby secure Duncan's trust in the Macbeths' false loyalty.

Sleeping Beauty

What Does Sleeping Beauty Mean?
A company that is prime for takeover but has not been approached by an acquiring company.

Investopedia explains Sleeping Beauty
A company may be considered a sleeping beauty because it has large cash reserves, undervalued real estate, or huge potential.

Bear Hug

What Does Bear Hug Mean?
An offer made by one company to buy the shares of another for a much higher per-share price than what that company is worth. A bear hug offer is usually made when there is doubt that the target company's management will be willing to sell.

Investopedia explains Bear Hug
The name "bear hug" reflects the persuasiveness of the offering company's overly generous offer to the target company. By offering a price far in excess of the target company's current value, the offering party can usually obtain an agreement. The target company's management is essentially forced to accept such a generous offer because it is legally obligated to look out for the best interests of its shareholders.

Dawn Raid

What Does Dawn Raid Mean?
The action of a firm or investor buying a substantial amount of shares in a company (making it a target firm) first thing in the morning when the stock markets open. This is done by a stock broker acting on behalf of a company. Because the bidding company builds a substantial stake in its target at the prevailing stock market price, the takeover costs are likely to be significantly lower than they would be had the acquiring company first made a formal takeover bid.

Investopedia explains Dawn Raid
Like the dawn raid in war, the corporate dawn raid is done early in the morning, so by the time the target realizes it's being attacked, it's too late - the investor has already scooped up some controlling interest. However, only a maximum of 15% of a firm's shares can be bought this way. So, after a successful dawn raid, the raiding firm is likely to make a takeover bid to acquire the rest of the target company.

Дата добавления: 2015-10-29