Define: Raider

A raider refers to an individual or entity that attempts to take over a company by acquiring a significant number of its shares without the consent or approval of the company’s management.

Raiding itself is not illegal, but the tactics used by raiders may sometimes be considered illegal, such as insider trading or market manipulation.

A raider cannot directly force a company to sell, but by acquiring a substantial number of shares, they can influence the company’s decision-making process and put pressure on the management to consider a sale.

Yes, a company can employ various defensive strategies to protect itself against raiders, such as implementing poison pills, adopting staggered boards, or seeking white knight investors.

If a raider engages in illegal activities or violates securities laws during the raiding process, they can be held liable for damages caused to the company or its shareholders.

In some cases, a company may seek court intervention to prevent a raider from acquiring shares, especially if the raider’s actions are deemed to be against the best interests of the company or its shareholders.

If a raider engages in insider trading by using non-public information to gain an unfair advantage during the raiding process, they can be prosecuted under securities laws.

In certain jurisdictions, raiders may be required to disclose their intentions or plans regarding the target company, especially if they acquire a significant stake in the company.

Yes, raiders are often considered hostile bidders as they attempt to take over a company without the consent or cooperation of the target company’s management.

While raiders can be successful in taking over a company, it largely depends on various factors such as the target company’s defences, shareholder support, regulatory approvals, and the raider’s financial resources.