Takeover Bid is an action that can be defined as the process of taking over a company by another company or a business entity. In this process the acquiring company encourages the shareholders of the target company to sell the share of the target company to the acquiring company at a promising or competent price. The process of takeover bid can either be friendly or it can be hostile depending upon the circumstances and the financial condition of the target company.
There are different kinds of takeover bid such as
- Two Tier Bid
- Any and All Bid
The Two Tier Bid
Two Tier bid can be defined as the persuading bid or the encouraging bid as in this type of bid the acquiring companies utilizes all its tactics to acquire shares of the target company from its shareholders. For example in this kind of bit the acquiring company can offer the premium and the premium that is offered is above and beyond the price of the share that is existing in the market
Any and All Bid
In this type of takeover bid the acquiring company targets to buy any kind of outstanding shares from the shareholders of the target company at a specific and predefined price. The price that is offered to buy the shares of the target company is specific and it is almost equal to the market price of the shares or slightly above the market price.
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