Corporate raider

A corporate raider is an investor who seeks control of companies, often through acquisitions opposed by their management. Raiders may restructure or sell assets after gaining control.

Tender offer: A public offer to buy shares directly from shareholders at a stated price, often above the market price. A tender offer lets a raider bypass reluctant company management and appeal directly to shareholders.
Junk bond: A bond rated below investment grade, carrying higher credit risk and typically offering a higher yield. High-yield debt helped finance the large acquisitions associated with 1980s raiding.
Carl Icahn: An American investor known for acquiring significant stakes in companies and pressing for changes in their management or strategy. Icahn became one of the most prominent and enduring corporate raiders.
White knight: A preferred bidder invited by a target company to offer an alternative to an unwanted takeover. A white knight can rescue a target from a raider by offering management a more acceptable deal.
Agency problem: A conflict that arises when an agent's interests differ from those of the person or organization the agent represents. Raider campaigns often claim that managers put their own interests ahead of shareholders.
Proxy fight: A campaign to persuade shareholders to vote for a different slate of directors or a proposed corporate action. A raider can use shareholder votes to replace directors resisting a takeover.
Michael Milken: An American financier who helped expand the market for high-yield corporate bonds at Drexel Burnham Lambert. Milken's financing network supplied capital for many takeover bids.
T. Boone Pickens: An American oil executive and investor who pursued high-profile takeover bids, including efforts involving Gulf Oil and Unocal. Pickens's bids made shareholder pressure and takeover defense national news.
Greenmail: A company's repurchase of a hostile investor's shares at a premium to end a takeover threat. Some raiders have been bought out through greenmail rather than taking control.
Shareholder value: The value of a company's equity to its shareholders, often used as a measure of corporate performance or a management objective. Raiding strengthened pressure to treat shareholder returns as a central corporate goal.

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Kirk KerkorianRelated: Kerkorian used large stakes and takeover bids to gain leverage over major companies.