A hostile takeover bid is a type of takeover bid that is unsolicited by the target company's management, and is initiated by a bidder's public offer to purchase the targeted company's shares. A hostile takeover bid is often part of a larger corporate strategy, as the bidders aim to gain control of the target company and then replace the current management.

Tender offers are a common way for would-be acquirers to initiate a hostile takeover bid. In this approach, the bidder directly offers a premium over the current market price to the target company’s shareholders in order to encourage them to sell back their shares. The offer usually comes with a deadline, and should the acquirer acquire a specific percentage of the share capital of the target company, it can force out the remaining shareholders and take control.

Proxy fights are another way hostile bidders can gain control of a company. In this approach, the hostile bidder encourages shareholders to vote at a general meeting to replace the board members with advocates of the takeover. The aim is to have the board be in favour of the takeover and authorize it; however, the board may still be able to thwart the takeover if they decide to fail to negotiate with the would-be acquirer.

The least common approach is to acquire a company by buying shares on the open stock market. This is tricky, as it requires the acquirer to have enough money to buy out the majority of the shares. In addition, the acquirer may face problems in dealing with the hostile target board. If a large majority stake can be acquired, the acquirer can enforce merger or liquidation of the target company, or force the target to accept a tender offer from the acquirer, which usually offers a premium over the market price.

Hostile takeover bids can be attractive for potential acquirers as they offer an opportunity to increase their market share quickly. However, such bids are usually met with a lot of resistance from the management of the target company. They also often attract a lot of scrutiny from regulators and other stakeholders, as the approach is seen as highly aggressive and disruptive.