target company
firm that has been chosen as attractive for takeover by a potential acquirer.
Target Company
Definition: Corporation considered for takeover. Definition: [crh] Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential Definition: acquirer"acquirer.
ACQUIREE, TRANSFEREE, VICTIM, OFFEREE, TARGET COMPANY - The company which is being merged or taken over...
ACQUIRER - A firm or individual that is purchasing another firm or asset.
Target company
Often used in risk arbitrage. Firm that has been chosen as attractive for takeover by a potential acquirer.
Target Company
A firm that has been deemed as attractive for takeover by a potential acquirer.
See: Acquisition; Majority Shareholder; Raider; Takeover; Working Control ...
Target company
Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer.
The target company involved in merger or acquisition agrees not to consider other offers while negotiating with a particular bidder.
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See: Target Company
Assignment
1: When an option is exercised, the Options Clearing Corporation prepares an assignment notification to a broker/dealer that one of its clients has options written that were exercised.
Financial & Investment Dictionary:
Target Company
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A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.
Dawn raid A term of British origin used to describe the purchase of all available shares of a target company at the market's open by a raider.
Raiders who accumulate 5% or more of the outstanding shares in the target company must report their purchases to the SEC, the exchange of listing, and the target itself. See: takeover.
Proposal, either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target. Compare to exchange offer.
Form of shark repellent whereby a target company acquires a business so onerously regulated it makes the target less attractive, giving it, in effect, a safe harbor.
Dawn raid The purchase of a large shareholding in a target company in a very short time, prior to the announcement of a takeover bid....
targeted repurchase This is when a target company repurchases its own stock at a significant premium in order to prevent a hostile takeover. tariff A tax imposed on a product upon when it is imported into a country.
Investeens explains: Usually, the price of the target company's stock goes up when an offer to acquire it is made because the acquiring company offers to pay substantially more for the target company's shares than they were trading for before the ...
Hostile transactions occur when the target company is not aware of the offer or does not want to be bought. Eventually they turn friendly - in most cases.
(pension funds and life insurance companies) by the lead underwriter of a takeover that takes place when the underwriter provides the target company's shareholders with a cash alternative for a target company's shares in exchange for the bidding ...
When an acquisition occurs, the company that is being acquired is dubbed a target company.
What you can do with it: When there's a rumor that a company is going to be acquired, the stock of the target company usually goes up.
A takeover bid by one company for another, in which the directors of the target company oppose the bid. Their opposition may be temporary Ð...(Read more)
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Pac-Man Strategy The target company attempts to takeover the hostile raider. This happens when the target company is larger than the predator. The name comes from the video game. It is another takeover repellent devised by management.
Whitewash Resolution - A European term used in conjunction with the Companies Act Of 1985, which refers to a resolution that must be passed before a target company in a buyout situation can give financial assistance, ...
with poison pills: they can make a tender offer contingent on the target-company board nullifying the pill, and they can launch a proxy contest, in which they solicit target shareholders' votes to unseat the incumbent directors of the target company.
A European term used in conjunction with the Companies Act Of 1985, which refers to a resolution that must be passed before a target company in a buyout situation can give financial assistance, ...
By acquiring enough voting stock in another company, a holding company, also called a parent company, can exert control over the way the target company is run without actually owning it outright.
One company taking control of another by purchasing a majority or all of the target company's outstanding shares.
Bidders can also influence the target company's share price, naturally wanting to keep the price of the target down.
Often, the target company's assets are used as security for the loans acquired to finance the purchase. The acquiring company or group then repays the loans from the target company's profits or by selling its assets.
A British term to describe the purchase of all available shares of a target company at the market's open by a raider.
Usually, the acquirer in a leveraged buyout takes the target company private through the transaction. That means it will buyout the entire stake held by the public and delist from the listed stock exchange, if the target is a public company.
Tender offer: When a corporation or other investor offers to buy a large portion of outstanding shares of another company, called the target company, at a price higher than the market price, it is called a tender offer.
A corporate raider (company A) that takes over a target company (company B) in order to sell large assets of company B to repay debt.
Usually the market price of the target company is less than the price offered by the acquiring company.
When a corporation offers to buy outstanding shares of another company, called the target company, at a price higher than the market price, it is called a tender offer. The tender is usually part of a bid to take over the target company.
Greenmail
The holding of a large block of stock of a target company by an unfriendly company, with the object of forcing the target company to repurchase the stock at a substantial premium to prevent a takeover.
Friendly potential acquirer sought by a target company threatened by an unwelcome suitor.
Adjustable rate preferred stock (ARPS)
Publicly traded issues that may be collateralized by mortgages and MBSs.
White Knight. A friendly potential acquirer sought out by a target company that is threatened by a less welcome suitor.
Working Capital Management. The management of Current Assets and Current Liabilities to maximize short-term liquidity.
After dispatching this document to the shareholders of the target company (the one receiving the bid), it has to leave the Offer open for at least 21 days.
The end of this 21 day period is deemed to be 'the First Closing Date'.
These transactions can be simple, or complex, but generally involve the acquirer buying a majority of the stock of the target company. This majority position enables the acquirer to exercise control over the other company.
Cash offer
A proposal to acquire shares in a target company by offering cash for stock. Usually occurs during a company takeover.
Cash settlement
Payment for deals the day after dealing.
If the tender offer is successful and the corporation accumulates 5% or more of another company, it has to report its holdings to the Securities and Exchange Commission (SEC), the target company, ...
When a life insurance company makes an acquisition, part of the purchase price represents the value of the insurance contracts in the target company.
White Knight
A company that makes a friendly takeover offer to a target company that is being faced with a hostile takeover from a separate party.
Notes:
The knight in shining armor gallops to the rescue! ...
Strategic move by a takeover-target company to make its stock less attractive to an acquirer.
Premium
The amount by which the price of a security exceeds its principal amount.
Often used in risk arbitrage. Proposal, either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target. Compare to exchange offer.
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A corporate action where an acquiring company makes a bid for the outstanding shares of a target company.
Hostile - Often refers to an unsolicitated and unwanted bid by the target company. It rejects this bid and indicates that the company does not want to be acquired by that bidder.
A hostile takeover scenario in which a corporate or individual investor begins to build up a stake in a target company with the ultimate aim of acquiring a controlling interest and replacing the current management.
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An official document from a bidder in a takeover battle that is sent to shareholders in the target company giving full details of the bid. In the United States, an offer document can be synonymous with a prospectus.
Tender - Offer to purchase securities, usually at a premium above the market price, with the objective of taking control of the target company.
A friendly potential acquirer of a firm sought out by a target company that is threatened by a less welcome suitor.
Widely held: ...
The loans extended and the bonds issued to finance the take-over are usually secured against the assets and cash flow of the target company (i.e. being bought).
Takeover:
A bidding company seeks to obtain a controlling interest (more than 50% of the shares) in the target company.
Often used in risk arbitrage as a form of shark repellent. A target company acquires a business so onerously regulated that it makes the target less attractive, giving it, in effect, a safe harbor.
Leveraged Buy-out (LBO)
The use of borrowed funds to purchase a company where the equity value or potential cash flow of the target company is expected to be sufficient to result in a profit for shareholders and/or meet debt repayments.
individual's already owned securities, will total over 20% of the outstanding voting securities of the company. For federally incorporated companies, the equivalent requirement is more than 10% of the outstanding voting shares of the target company.
Greenmail Situation in which a large block of stock is held by an unfriendly company, forcing the target company to repurchase the stock at a substantial premium to prevent a takeover.
If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
 See also: Banks, Expense, Values, Saving, Risk arbitrage
  
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