What is a Takeover Bid?

A takeover bid is an offer made by a company to acquire another company.

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A takeover bid is an offer made by a company to acquire another company.

Bids can be cash, stocks, or a mix of both. Acquisition conditions usually set a validity period. The acquisition can be hostile (that is, without the consent or cooperation of the acquisition target), or it can be goodwill (that is, accepted by the acquisition target).