Friendly Takeover

Friendly Takeover
A situation in which a target company's management and board of directors agree to a merger or acquisition by another company. In a friendly takeover, a public offer of stock or cash is made by the acquiring firm, and the board of the target firm will publicly approve the buyout terms, which may yet be subject to shareholder or regulatory approval. This stands in contrast to a hostile takeover, where the company being acquired does not approve of the buyout and fights against the acquisition.

In most cases, if the board approves a buyout offer from an acquiring firm, the shareholders will vote to pass it as well. The key determinant in whether the buyout will occur is the price per share being offered. The acquiring company will offer a premium to the current market price, but the size of this premium (given the company's growth prospects) will determine the overall support for the buyout within the target company.


Investment dictionary. . 2012.

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  • friendly takeover — merger when the target firm s management and board of directors is in favor of the takeover. Antithesis of hostile takeover. Bloomberg Financial Dictionary * * * friendly takeover friendly takeover ➔ takeover …   Financial and business terms

  • friendly takeover — noun a takeover that is welcomed by the management of the target company • Hypernyms: ↑takeover …   Useful english dictionary

  • friendly — UK US /ˈfrendli/ adjective ► WORKPLACE, FINANCE relating to situations in which the owners or directors of a company are willing to sell it to another company that wants to buy it: a friendly merger/offer/takeover »The board is seeking a higher… …   Financial and business terms

  • takeover — take·over / tāk ˌō vər/ n: the acquisition of control or possession (as of a corporation) a hostile takeover Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. takeover …   Law dictionary

  • friendly — friend·ly adj: agreeable to those affected: not hostile a friendly takeover Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. friendly …   Law dictionary

  • takeover — General term referring to transfer of control of a firm from one group of shareholders to another group of shareholders. Change in the controlling interest of a corporation, either through a friendly acquisition or an unfriendly, hostile , bid. A …   Financial and business terms

  • Takeover — General term referring to transfer of control of a firm from one group of shareholder s to another group of shareholders. The New York Times Financial Glossary * * * takeover take‧o‧ver [ˈteɪkˌəʊvə ǁ ˌoʊvər] noun [countable] FINANCE the act of… …   Financial and business terms

  • friendly — friend|ly1 [ frendli ] adjective *** ▸ 1 pleasant and helpful ▸ 2 liking each other ▸ 3 about a country ▸ 4 game: not in competition ▸ 5 about takeover 1. ) someone who is friendly is always pleasant and helpful toward other people: I enjoy… …   Usage of the words and phrases in modern English

  • Takeover — A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares. A welcome takeover is usually referring to a favorable and… …   Investment dictionary

  • friendly — I UK [ˈfren(d)lɪ] / US adjective Word forms friendly : adjective friendly comparative friendlier superlative friendliest *** Metaphor: A friendly relationship between people is like warm, sunny weather. When people are unfriendly towards one… …   English dictionary

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