Offer Document

Offer Document – Offer document is basically a letter sent by a particular company that is making a bid to take over another company. This letter is sent to the members of this target company and makes the offer of buying shares at a particular price.

It also contains all the details about the offer and gives reasons for acceptance as well. Share prices have a lot to do with this kind of acquisition; in case the share market prices fall of a particular company, that company may be exposed to a bid.

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These kind of takeovers can be either agreed bids or hostile bids; while in the former the target company agrees to be bought; in the case of latter, the company resist the takeover. It is important that the bidders have all their financial backing ready before they attempt to make a bid for the target company and all the information about making the bid must be confidential except released via announcements that are regulated by code.

Edited and Updated 08th March 2014

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