Often used in risk arbitrage. Firm that has been chosen as attractive for takeover by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the S.E.C., The exchange the target company is listed on, and the target company itself once the 5% threshold is hit. See raider.
Company attempted to be taken over in TENDER OFFER, LEVERAGED BUYOUT, or other type of takeover or acquisition attempt. See TAKEOVER BID, TENDER OFFER.