An OPA (Oferta Pública de Adquisición, Spain's term for a takeover bid) is an offer launched by a company, fund, or investor to acquire a significant percentage (or all) of the shares of a listed company, made directly to its shareholders.
Friendly or hostile
- Friendly: backed by the target company's board of directors.
- Hostile: launched without the board's prior agreement, and even against its recommendation.
Premium over the share price
To encourage shareholders to sell, a takeover bid usually offers a price per share above the current market price (the "premium"), which compensates for giving up any potential future rise.
What a shareholder can do
Accept the offer and sell their shares at the offered price, reject it and keep their shares (if the bid isn't for 100% or doesn't reach the delisting threshold), or, in the case of delisting bids that exceed a certain acceptance percentage, be forced to sell under squeeze-out rules.