A letter to the chief executive officer or board of directors of a company from a bidder containing a preliminary offer to acquire the company. The letter typically requests friendly negotiation, but also threatens to take the deal to the stockholders directly if the target does not negotiate. Although this threat is sometimes only made implicitly, more often it is stated explicitly at the end of the letter.

For more information about hostile takeovers, see Practice Notes, What's Market: Hostile Takeovers and Proxy Contests and Defending Against Hostile Takeovers.