Dawn Raid

Dawn Raid
When a firm or investor buys a substantial number of shares in a company first thing in the morning when the stock markets open. 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.

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 minority interest in 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.

Investment dictionary. . 2012.

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  • dawn raid — noun A stock market operation in which a large proportion of a company s shares are suddenly bought, often in anticipation of a takeover bid • • • Main Entry: ↑dawn dawn raid see under ↑dawn • • • Main Entry: ↑raid * * * dawn raid UK US noun …   Useful english dictionary

  • dawn raid — dawn raids 1) N COUNT If police officers carry out a dawn raid, they go to someone s house very early in the morning to search it or arrest them. Thousands of pounds worth of drugs were seized in dawn raids yesterday. 2) N COUNT If soldiers carry …   English dictionary

  • dawn raid — 1) This term has two potential meanings: • In the context of UK takeovers, an attempt by a potential bidder to acquire a significant stake in a target in the market in a short space of time as the market opens. • In the context of competition law …   Law dictionary

  • dawn raid — n an attack or operation by soldiers or police that happens very early in the morning …   Dictionary of contemporary English

  • dawn raid — noun count a military or police attack made at the beginning of the day, so that the people being attacked will not be prepared for it …   Usage of the words and phrases in modern English

  • Dawn raid — A dawn raid is a visit by the police, immigration officers or other officials in the early morning, hoping to use the element of surprise to arrest targets that they think may resist arrest, be politically sensitive, or simply be elsewhere during …   Wikipedia

  • dawn raid — A term of British origin used to describe the purchase of all available shares of a target company at the market s open by a raider. A dawn raid is a surprise technique that allows the raider to gain a substantial share of the target company… …   Financial and business terms

  • Dawn Raid — A dawn raid is an early morning police or immigration agency operation.Dawn Raid may also refer to: *Dawn Raid Entertainment, a New Zealand record label specialising in hip hop …   Wikipedia

  • dawn raid — UK / US noun [countable] Word forms dawn raid : singular dawn raid plural dawn raids a military or police attack made at the beginning of the day, so that the people being attacked will not be prepared for it …   English dictionary

  • dawn raid — An attempt by one company or investor to acquire a significant holding in the equity of another company by instructing brokers to buy all the shares available in that company as soon as the stock exchange opens, usually before the target company… …   Accounting dictionary

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