Takeover Bid

A takeover bid is an offer made by one company to purchase another company, aiming to gain control over it. The buying company proposes to buy shares at a specific price, usually at a premium compared to the current market value, to entice shareholders to sell. This can be a friendly approach, where both companies agree to the terms, or a hostile bid, where the target company’s management opposes the offer. Takeover bids are common in the business world as companies seek growth, market expansion, or other strategic advantages.