The acquisition of shares in a target company by a potential offeror. Stakebuilding has two principal purposes. First, the more shares that an offeror buys, the greater his chances of success may become. Second, if it is likely that a bid will be contested and the share price of the target company may therefore rise, an offeror may reduce the risks and expenses of failure by selling its stake at a profit.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.