friendly takeover
A takeover that is approved by the target corporation’s board of directors.
Search Results for: friendly takeover
takeover
takeover. The acquisition of ownership or control of a corporation. • A takeover is typically accomplished by a purchase of shares or assets, a tender offer, or a merger. [Cases: Securities Regulation 52.10–52.26. C.J.S. Securities Regulation §§ 121, 123–127, 129–130, 138–139.] friendly takeover. A takeover that is approved by the target corporation’s board of directors.
white knight
white knight. A person or corporation that rescues the target of an unfriendly corporate takeover, esp. by acquiring a controlling interest in the target corporation or by making a competing tender offer. — Also termed friendly suitor. See TAKEOVER. Cf. CORPORATE RAIDER.
lockup option
lockup option. A defense against a corporate takeover, in which a friendly party is entitled to buy parts of a corporation for a set price when a person or group acquires a certain percentage of the corporation’s shares. • An agreement of this kind may be illegal, to the extent it is not undertaken to
crown jewel defense
crown-jewel defense. An antitakeover device in which the target company agrees to sell its most valuable assets to a third party if a hostile bid is tendered, so that the company will be less attractive to an unfriendly suitor. Cf. SCORCHED-EARTH DEFENSE; PAC-MAN DEFENSE.
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crown jewel
crown jewel. A company’s most valuable asset, esp. as valued when the company is the subject of a hostile takeover. • A common antitakeover device is for the target company to sell its crown jewel to a third party so that the company will be less attractive to an unfriendly suitor.