RE: The thing is4 Feb 2020 12:59
Dawn Raid
A "Dawn Raid" is a corporate action more common in the United Kingdom; however, it has also occurred in the United States. During a dawn raid, a firm or investor aims to buy a substantial holding in the takeover-target company's equity by instructing brokers to buy the shares as soon as the stock markets open. By getting the brokers to conduct the buying of shares in the target company (the "victim"), the acquirer (the "predator") masks its identity and thus their intent.
The acquirer then builds up a substantial stake in its target at the current stock market price. Because this is done early in the morning, the target firm usually doesn't get informed about the purchases until it is too late, and the acquirer now has a controlling interest. In the U.K., there are, now, restrictions on this practice.