ABSTRACT
It is important to note that these terms are not specifically legal terms but are often used in business and finance circles to describe particular situations.
The word ‘takeover’ is generally used to describe the situation where one company acquires the shares of another company (target company). The acquiring or bidding company becomes the holding company of the acquired or target company which therefore becomes a subsidiary. Takeovers may be accomplished by agreement or a takeover bid may be a ‘hostile’ bid.
