CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

What is a takeover bid?

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.

Related Terms

Latest video

Latest Articles

View all articles

Still looking for a broker you can trust?

Join the 580.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading