Posted in Finance, Accounting and Economics Terms, Total Reads: 512
Definition: Any-and-All Bid
As the name suggests, it is a bid which involves the buying of any shares and all the shares of a company (say X) available in the market by another company (say Y). This is usually implemented when a company wants to take over another company in the case of a hostile takeover. In that case above, the company Y would want to acquire company X.
The price at which the acquiring company buys the shares from the shareholders is fixed and the duration over which this price is maintained is also fixed in the beginning itself. This doesn’t involve the board of directors of the company to be acquired and hence is considered to be a hostile takeover.
For this to be successful, the acquirer usually buys the shares of the company to be acquired at a little higher price (say 10%). If most of the shareholders come forward and sell the shares, a hostile takeover of the company is done.