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Finance Dictionary and Glossary of Investment Terms
Dawn raid
Definition 1.
A term of British origin used to describe the purchase of all available shares of a target company at the market's open by a raider. A dawn raid is a surprise technique that allows the raider to gain a substantial share of the target company before the target company knows what is happening
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Definition 2.
When a firm or investor buys up a substantial amount of shares in a company (making it a target firm). This is done by a stock broker, acting on behalf of a company, first thing in the morning when the stock markets open. Because the bidding company (the predator) builds a substantial stake in its target at the prevailing stock market price, the takeover costs are likely to be significantly lower than the price of a formal takeover bid.
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