Definition of Corporate raider:
An investor who seeks to take control of a publicly traded company by acquiring a controlling interest of the companys stock and then replacing the board of directors and/or the Corporate Officers. See Control Stock; Diversified Holding Company; Holding Company; Hostile Takeover; Two-Tier Tender Offer.
Corporate raiders may use a variety of tactics to affect the changes they desire. This can include using their voting power to install handpicked members to the board of directors. They could also buy the outstanding shares under the pretense of pushing for changes the current leadership is not amenable to, but then offer to sell back those shares at a premium price in order to turn a profit for themselves.
A financier who makes a practice of making hostile takeover bids for companies, either to control their policies or to resell them for a profit.
A corporate raider is an investor who buys a large number of shares in a corporation whose assets appear to be undervalued. The large share purchase would give the corporate raider significant voting rights, which could then be used to push changes in the company's leadership and management. This would increase share value and thus generate a massive return for the raider.
How to use Corporate raider in a sentence?
- Though corporate raiders usually seek to somehow improve and profit from a company, their ultimate motives may be very personal.
- The business could become a target for a corporate raider.
- The usual goal of a corporate raider is to affect profitable change in the company's share price and sell the company or their shares for a profit at a later date.
- A corporate raider is an investor who buys a large interest in a corporation whose assets have been judged to be undervalued.
Meaning of Corporate raider & Corporate raider Definition