What is a 'Takeover bid' in term of The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. When a takeover bid is required to be made by way of a public announcement issued to the stock exchanges, f

"Takeover bid" is an offer to the shareholders of a company, who are not the promoters of the company or the sellers of the shares under an agreement, to buy their shares in the company at the offered price within the stipulated period of time. It is addressed to the shareholders with a view to acquiring sufficient number of shares to give the Offer or Company, voting control of the target company. A takeover bid is a technique, which is adopted by a company for taking over control of the management and affairs of another company by acquiring its controlling shares. The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 require acquirers to make bids for acquisition of certain level of holdings subject to certain conditions. A takeover bid is required to be made by way of a public announcement issued to the stock exchanges, followed by a Detailed Public Statement in the newspapers. Such requirements arise in the following cases: - for acquisition of 25% or more of the shares or voting rights; for acquiring additional shares or voting rights to the extent of 5% of the voting rights in any financial year beginning April 01, if such person already holds not less than 25% but not more than 75% or 90% of the shares or voting rights in a company as the case may be; for acquiring control over a company.