Background: The parent company of Priceline, Australian Pharmaceutical Industries (API) is up for grabs. There have been two main suitors vying for API's heart: Wessies (aka Wesfarmers) and Woolies (the fresh food people).  

What happened: Wesfarmers have been the frontrunners this whole time. In July, they lobbed a huge $764 million. API seemed keen, so Wesfarmers did their due diligence, and signed a binding offer.

What else: Just when it looked like it was a done deal, Woolies swooped in with an even bigger offer. We're talkin' 20 cents more per share. So far, Woolies' offer is indicative and non-binding. 

So what's the key learning?

💡When it comes to takeovers, there are different kinds of offers. We've got binding offers (aka, it's locked and loaded. If the company to be acquired accepts, there's no turning back.) 

💡We've also got non-binding offers (or indicative offers). These are like an agreement to agree between the two parties. But it's not intended to be legally binding, so the buyer isn't locked into the deal.

💡By making a non-binding offer, Woolies is saying, 'Hey Priceline, let's keep talking'...but they ain't committing. Either way, this would have really P.O'd Wesfarmers, who was probably already painting the walls Priceline pink.