What is a takeover bid?
An offer made by an acquiring company or individual to gain a controlling stake in another business. Bids are generally targeted at the company's board and shareholders and can usually be categorised as hostile or friendly.
Where have you heard about takeover bids?
Many large, multinational companies - including sports teams - have been involved in high-profile takeover bids in recent years. Takeover bids are often launched by large holding companies and can be worth billions of pounds.
What you need to know about takeover bids.
If a takeover bid is successful, the acquiring company takes ownership of the holdings, debt and operations of the target firm.
Sometimes takeovers are welcomed by both parties if they're mutually beneficial. If a bid has board approval it is generally considered friendly.
If a company's board doesn't give its approval it could become subject to a hostile bid. Here, the acquirer may try to buy up existing shares to take a controlling interest, or even convince shareholders to vote in a new board to clear the way for a deal.