Open Offer


This query is : Resolved 

23 January 2010 What is Open Offer in context to takeover and acquisition ? When it is necessary.

25 January 2010 sir,

takeover implies acquisation of control of a company which is already registered through the purchase or exchange of share takeover refers to usually by purchase from the shareholders of a company their share at a specified price to the extent of at least controlling interest in order to gain control of the company.

it is needed for future transactions .

ramesh

27 January 2010 open offer basically means when a company opts to buy shares in the open market.The company specifies a certain price.The open offer is for a specified period of time.

28 January 2010 dear sir,

Hostile takeovers:-
A hostile takeover allows a suitor to bypass a target company's management unwilling to agree to a merger or takeover. A takeover is considered "hostile" if the target company's board rejects the offer, but the bidder continues to pursue it, or the bidder makes the offer without informing the target company's board beforehand.
A hostile takeover can be conducted in several ways. A tender offer can be made where the acquiring company makes a public offer at a fixed price above the current market price. Tender offers in the USA are regulated with the Williams Act. An acquiring company can also engage in a proxy fight, whereby it tries to persuade enough shareholders, usually a simple majority, to replace the management with a new one which will approve the takeover. Another method involves quietly purchasing enough stock on the open market, known as a creeping tender offer, to effect a change in management. In all of these ways, management resists the acquisition but it is carried out anyway.

RAMESH KUMAR VERMA


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