Dawn Raid Law and Legal Definition
Dawn raid refers to the purchase by a firm or investor, all available shares of a target company when the stock markets open. In a dawn raid, dawn raider gain a substantial share of the target company before the target company knows what is happening. Since, the bidding company builds a substantial stake in its target at the existing stock market price, the takeover costs are likely to be significantly lower than they would be had the acquiring company first made a formal takeover bid.
