Takeover

When control of a private or public company passes from one group of shareholders to another. This can either be on friendly terms with the agreement of the company Board and shareholders or through a hostile bid. In this case the acquiring company goes directly to the target company’s shareholders with a tender offer which is usually far more than the market value of their shares. It will also look to replace the current management to get the takeover approved.

This definition is for general information purposes only