Hostile Bid

Hostile Bid - A Hostile Bid is a takeover, taking place in several ways, a tender offer, a proxy fight, and a simple majority. A tender offer is the acquiring company making a public offer at a fixed price above current market price. A proxy fight is when a company tries to persuade shareholders. A simple majority is to replace the management team with a newly appointed management of the takeover's choice. Another method involves purchasing of enough stock on the open market, known as a creeping tender offer to effect the change of management. Management resists the acquisition, but it is completed.