1 A method of raising capital for acquisitions or other purposes, used by listed companies as an alternative to a rights issue or placing. The company invites market makers or banks to bid for new shares, selling them to the highest bidder, who then sells them to the rest of the market in the expectation of making a profit. Bought deals originated in the USA and are becoming increasingly popular in the UK, although they remain controversial as they violate the principle of pre-emption rights. See also vendor placing.
2 A management buy-out or one in which the finance is obtained from a single institution.
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