When a company approaches the board of another company indicating that an offer is about to be made for their shares The price per share that is offered for the target firm is usually too high for the board to refuse the offer If the target company says the merger is OK but they want a higher price, this is a "teddy bear hug"
Takeover bid so attractive that the target company's directors, who might be adverse to it for other reasons, must approve it or risk shareholder protest
An offer made directly to the Board of Directors of a target company Usually made to increase the pressure on the target with the threat that a tender offer may follow
Often used in risk arbitrage Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market-value of the acquiree's share so as to as to squeeze (hug) the target into acceptance
a takeover bid so attractive that the directors of the target company must approve it or risk shareholder protest a wrestling hold with arms locked tightly around the opponent
A bear hug is a rather rough, tight, affectionate hug. A rough, tight hug. an action in which you put your arms around someone and hold them very tightly because you like them or are pleased to see them