Legal Definitions - hostile bidder

A hostile bidder, also known as a corporate raider, is a person or business that tries to take over a company without the approval of its management. They do this by buying a large amount of the company's stock and then replacing the current management with their own people.

For example, if a company is struggling financially, a hostile bidder may see an opportunity to buy a large amount of its stock at a low price. They would then use their ownership to push out the current management and take control of the company.

Another example is when a company receives a takeover offer from a hostile bidder that is not in the best interest of the company or its shareholders. The current management may reject the offer, but the hostile bidder may continue to pursue the takeover by buying more stock and trying to gain control of the company.

In both examples, the hostile bidder is trying to take control of a company without the approval of its current management, which can lead to conflicts and disruptions in the company's operations.