Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Takeover definition

In a takeover, one company will buy another company and assume control of it. Publically listed companies will usually make a public takeover bid or offer for the target company, which must be accepted by the target company’s shareholders (its current owners) before it can be completed.

Takeover definition

In a takeover, one company will buy another company and assume control of it. Publically listed companies will usually make a public takeover bid or offer for the target company, which must be accepted by the target company’s shareholders (its current owners) before it can be completed.

Takeovers and mergers are very similar, but whereas takeovers generally involve a larger company buying and taking control of a smaller company, a merger usually takes place between two similar-sized companies and the shareholders of the two companies end up with similar-sized shares of the merged entity in a mutual decision. Takeovers can be friendly, where the board of the target company accepts the approach and recommends the deal to its own shareholders, or hostile whereby the acquirer goes directly to the target’s shareholders against the wishes of its management and board.

Takeovers and mergers are generally categorised as Mergers and Acquisition, or M&A. The biggest ever takeover remains Vodafone’s acquisition of Germany’s Mannesmann for $202 billion in 1999.

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