Category: Business
Created by: Sanket0510
Number of Blossarys: 22
This method discourages the takeover by offering high lucrative compensations to the top management in the event of them losing their jobs in case of a takeover.
Implementing a Super majority clause, which requires 70-80% of stockholders' approval to pass the resolution of takeover. This makes it more difficult for the potential acquirer to convince the ...
This defense strategy is often complemented with the poison pill technique. This technique, again aims at buying more time and increasing the difficulty for the predator. Staggered Board requires you ...
For a short time, you can entangle the bidder in a legal suit, by challenging the validity of the takeover; thus, helping the management of the target company to buy time for other defense ...
Tactic to deter a hostile takeover, in which a company sells off its most attractive assets to a friendly third party or a spin-off company. By doing so, the purchase of the company will seem ...
A potential acquirer that is viewed more favorably by a target firm’s management and board than the initial bidder.
Repurchase by a company of shares acquired by a raider, with a view to preventing a complete takeover. Usually involves payment of a price considerably above the market value of the shares involved.