12 May 2016 By PDSNET

The situation where one company makes an offer for some or all of the shares of another company. The offer to existing shareholders is usually pitched at a price well above the existing market price to persuade shareholders to accept the offer. Many investors select companies that may be ripe for a take-over and then wait. Some classic indications of a possible take-over: the company�s market price is well below its net value; it has recently cut or passed its dividend; and it has a large assessed tax loss that could be used by another company.

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