What is a takeover bid?
A takeover bid is an offer by an acquiring company or third party to purchase a sizeable portion of equity of another company. The price offered is usually at a premium to the market price to entice investors to participate. The takeover bid will only proceed if the acquiring firm receives a certain number of shareholders who want to participate in the bid. If the takeover bid is successful, the investor tenders their shares. This means that they sell their …