Category: Business
Created by: Sanket0510
Number of Blossarys: 22
English (EN)A potential acquirer that is viewed more favorably by a target firm’s management and board than the initial bidder.
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 ...
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 ...
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 ...
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 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.
