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Finance Dictionary and Glossary of Investment Terms
Individual or corporate investor who intends to take control of a company (often ostensibly for greenmail) by buying a controlling interest in its stock and installing new management. Raiders who accumulate 5% or more of the outstanding shares in the target company must report their purchases to the SEC, the exchange of listing, and the target itself. See: takeover.
An individual or entity attempting to acquire enough equity in a target company to assume a controlling interest, usually through a hostile takeover bid. Such an interest allows the raider to replace the existing management with his own representatives, completing the takeover. A raider would typically target a company with undervalued assets, which would be relatively inexpensive to take over. Once the raider has accumulated 5% of the shares in a company, he/she must report this fact to the SEC and the target company.
An individual or organization who tries to take over a company by initiating a hostile takeover bid.