A takeover bid is an attempt by one company to purchase or acquire another company. This can be done through a friendly agreement between both companies, where the acquiring company makes an offer to buy the target company's shares at a premium price. Alternatively, it can also involve hostile takeovers, where the acquirer tries to gain control of the target company by making an unsolicited bid or using other tactics such as proxy fights or tender offers. The goal is usually to expand the operations, increase market share, and improve profitability through synergies created by combining resources and eliminating overlapping costs.