Takeover


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

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takeover take‧o‧ver [ˈteɪkˌəʊvə ǁ -ˌoʊvər] noun [countable]
FINANCE the act of getting control of a company by buying over 50% of its shares:

• To avoid a takeover, the investment company went deeply in debt to pay a huge special dividend.

• There was a takeover bid by a larger and more aggressive company.

• an anti-takeover plan (= one to try and avoid a takeover )

word focus - takeover
If one companyacquires another, it buys it or takes it over. A buyout is when a person or organization buys a business. An employee/​staff buyout is when employees buy the company they work for. A management buyout is when a company’s senior managers buy the company they work for. A leveraged buyout is when a person or organization buys a company using a loan borrowed against the company’s assets, some of which may then be sold to pay off the loan. In order to avoid a takeover, a company may use a poison pill (= something in a company’s financial or legal structure that makes it difficult for another company to take it over ) . Other actions taken by companies to prevent a hostile takeover include the crown jewels defence , in which a company sells important assets cheaply to a supporter, so that the company is less attractive to buy, and then buys them back later when the takeover is less likely to happen, or the Pacman defense , in which a company that is the target of a takeover buys the shares of the company that is trying to take it over. A merger is an occasion when two or more companies or organizations join together to form a larger company.
ˌcreeping ˈtakeover FINANCE
a takeover which involves gradually buying shares of a company from different shareholders until you have enough to take control of their company, rather than making an offer to all shareholders to buy a fixed number of shares at a fixed price:

• The company has denied it is plotting a creeping takeover.

ˌfriendly ˈtakeover FINANCE
a takeover that the company being taken over wants or agrees to:

• The Executive Board resolved to submit a friendly takeover bid for a 100% interest in the Canadian steel producer.

ˌhostile ˈtakeover FINANCE
a takeover that the company being taken over does not want or agree to; = UNFRIENDLY TAKEOVER:

• Target companies may deploy various methods in order to protect themselves against a hostile takeover.

ˌleveraged ˈtakeover FINANCE
a takeover using borrowed money. The assets of the company being taken over are used as security for the loans taken out by the buying company and the repayments are made from the cash flow (= money going into the business) of the company taken over, or from selling some of its assets:

• a $2.4 billion leveraged takeover

reˌverse ˈtakeover FINANCE
the takeover of a larger company by a smaller one, or a takeover in which the company that has been taken over controls the new organization:

• The company has finally secured its future with a successful reverse takeover.

unˌfriendly ˈtakeover FINANCE
another name for a hostile takeover:

• The webserver went offline beause of an unfriendly takeover.

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   Acquisition of a controlling interest in a company through the purchase of its shares.

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takeover UK US /ˈteɪkˌəʊvər/ noun [C]
FINANCE the act of taking control of a company by buying enough of its shares to do this: »

The company has agreed an $11.5bn takeover.

friendly/hostile takeover »

In hostile takeovers, the employees of the target firm are often concerned about losing their jobs.

takeover of sth »

the takeover of British toymakers by American multinationals

takeover candidate/target »

The dramatic rise in the stock price made it a less attractive takeover target.

takeover attempt/proposal »

They are expected to receive a takeover proposal from a US-based multinational.

»

The company announced it was in takeover talks.

Compare MERGER(Cf. ↑merger)
See also ANTI-TAKEOVER(Cf. ↑anti-takeover), LEVERAGED TAKEOVER(Cf. ↑leveraged takeover), REVERSE TAKEOVER(Cf. ↑reverse takeover), UNFRIENDLY TAKEOVER(Cf. ↑unfriendly takeover)
See Note MERGER(Cf. ↑merger)

Financial and business terms. 2012.

Look at other dictionaries:

  • 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

  • takeover — ake o*ver n. (Business, Finance) The acquisition of ownership of one company by another company, usually by purchasing a controlling percentage of its stock or by exchanging stock of the purchasing company for that of the purchased company. It is …   The Collaborative International Dictionary of English

  • takeover — (n.) 1917, an act of taking over, noun derivative of verbal phrase take over (1884), from TAKE (Cf. take) (v.) + OVER (Cf. over). Attested from 1958 in the corporate sense …   Etymology dictionary

  • takeover — ► NOUN ▪ an act of assuming control of something, especially the buying out of one company by another …   English terms dictionary

  • takeover — [tāk′ō΄vər] n. the act or an instance of assuming control or possession; esp., a) the usurpation of power in a nation, organization, etc. ☆ b) the assumption of ownership or control of a corporation esp. through the acquisition of its stock: Also …   English World 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 — This article is about the business term. For Takeover, see Takeover (disambiguation). For the science fiction series, see Hostile Takeover Trilogy . In business, a takeover is the purchase of one company (the target) by another (the acquirer, or… …   Wikipedia

  • takeover — n. 1) a hostile takeover (of a firm) 2) (misc.) a takeover bid * * * (misc.) a takeover bid a hostile takeover (of a firm) (D;intr.,tr.) to takeover from (the new government has taken over from the outgoing government; we will takeover power from …   Combinatory dictionary

  • takeover */*/ — UK [ˈteɪkˌəʊvə(r)] / US [ˈteɪkˌoʊvər] noun [countable/uncountable] Word forms takeover : singular takeover plural takeovers 1) a situation in which one company takes control of another company by buying a majority of its shares a takeover bid (=… …   English dictionary

  • takeover — noun ADJECTIVE ▪ attempted, proposed ▪ hostile ▪ company, corporate ▪ communist, military …   Collocations dictionary


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