Moneyextra.com
- Our Online Buys
- Get a Loan
- Get a Credit Card
- Get a Mortgage
- Cheap Car Insurance
- About Us
- Contact Us
- My Portfolio
-
Money News
- Finance Features
- News Feeds
- Guides
- Dictionary
Takeover
Additional Services
- Company Reports - get free company reports here!
- Stocks & Shares ISAs - look for the best ISA online
- Insurance - need home, travel or car insurance?
A takeover occurs when one company approaches another company, making an offer to the latteršs shareholders, seeking to acquire their shares in sufficient quantities to take control. If the company which is being taken over is listed on the Stock Exchange, a strict protocol of rules and regulations exist to protect the interests of shareholders.
A time limit is set for acceptance of the offer. If the company making the offer gets control of 90% or more of the shares, it has a legal right to acquire the remaining 10% of the shares at the offer price.
A takeover bid may be friendly, recommended by the board of the company being taken over, or it may be hostile, rejected by the board with the company making the offer going direct to shareholders.
See Also: Online share dealing service Stockmarket Centre
Last Updated: May 2008 Š Moneyextra.com
MoneyExtra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.