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Financial Dictionary

Acquisition

Acquisition is the act of one corporation taking over another one by acquiring a controlling interest in it. In situations where the corporation being taken over has not invited the takeover, this is considered an "unfriendly" acquisition. In this case, the potential buying company may offer to pay a price well above the current market value of the corporation that they are trying to acquire. This may be done by offering new securities and other inducements to stockholders.


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