Unsolicited bids have become the talk of the Australian business landscape in 2025, as global and domestic players increasingly seek to snap up ASX-listed companies without waiting for an official invitation. These surprise offers can create volatility, opportunity, and sometimes controversy—making them a topic every investor should understand.

What is an Unsolicited Bid?

An unsolicited bid occurs when an individual, company, or consortium makes an offer to acquire another company without the target’s board having requested or invited such an approach. In Australia, these are often referred to as “hostile takeovers”, though not every unsolicited bid is necessarily antagonistic. In recent years, unsolicited bids have been used as strategic tools, allowing would-be acquirers to bypass lengthy negotiations or leverage market conditions to their advantage.

They’re typically made public quickly, causing immediate share price reactions.
They can prompt rival bids, leading to competitive tension and potential bidding wars.
The target company’s board must respond, often advising shareholders to reject or consider the offer.

Why Are Unsolicited Bids Surging in 2025?

Several factors have contributed to a notable uptick in unsolicited bids in Australia this year:

Market Volatility: Ongoing global uncertainty has left some companies undervalued, tempting opportunistic buyers.
Regulatory Shifts: The Australian government’s 2025 tightening of Foreign Investment Review Board (FIRB) rules has made some assets more attractive to local buyers who can move quickly.
Private Equity Activity: Cashed-up private equity funds, both domestic and offshore, are aggressively seeking targets, sometimes bypassing conventional boardroom channels.
Technology and Infrastructure Focus: Sectors like energy transition, renewables, and tech infrastructure are seeing the most unsolicited activity, as investors chase future-proof assets.

Real-world example: In March 2025, a major unsolicited bid for a leading Australian renewable energy company made headlines when the board rejected a $5.4 billion approach, labelling it opportunistic after a temporary dip in share price. The move triggered competing offers and a short-term surge in sector valuations.

How Unsolicited Bids Impact Investors and Companies

Unsolicited bids can be a double-edged sword for shareholders. While they often deliver an immediate share price premium, not all bids succeed—and the aftermath can be turbulent:

Share Price Spikes: News of a bid typically boosts the target’s share price, offering a windfall to existing investors.
Boardroom Dynamics: Boards must weigh the offer’s merits and communicate with shareholders, sometimes facing pressure to extract better terms or fend off undervalued bids.
Due Diligence Risks: Because unsolicited bids are, by nature, sudden, acquirers may not have full access to the company’s books, raising risks for both sides if the deal progresses.
Regulatory Scrutiny: FIRB and ACCC review is mandatory for many large or sensitive deals, with the 2025 FIRB changes increasing reporting requirements and slowing down foreign deals.
Shareholder Decisions: Ultimately, shareholders vote on whether to accept or reject a bid. In 2025, activist investors have become more vocal, demanding higher premiums or rejecting bids seen as opportunistic.

Key Takeaways for Australian Investors

With unsolicited bids on the rise, investors should keep several factors in mind:

Monitor sectors with high takeover interest—especially infrastructure, renewables, and technology.
Understand the motives behind a bid: Is it a genuine growth opportunity, or an attempt to buy undervalued assets on the cheap?
Stay updated on 2025 regulatory changes, as FIRB and ACCC reviews can impact deal timelines and outcomes.
Don’t assume every bid will succeed. Failed bids can lead to short-term share price declines or strategic shifts by the target company.

Unsolicited bids will likely remain a fixture of the Australian market as investors and corporates jostle for advantage in a rapidly changing economy. Staying informed is the best defence—and the best way to spot opportunity when it knocks unexpectedly.