A person or firm that makes an unwelcome takeover bid for a company, often hostile and unsolicited.
A Crown Jewel Option is a defensive strategy used by companies to prevent hostile takeovers by giving a partner or friendly company the right to buy some of its best assets at a favorable price if a takeover were successful.
An aggressive strategy by a company or investor to acquire a substantial equity stake in another company by purchasing available shares immediately as the stock market opens, often catching the target company off guard.
A defended takeover bid refers to an acquisition attempt where the directors of the target company actively oppose the bid, employing various defenses to prevent the takeover.
Greenmail refers to the practice of purchasing a substantial block of a company’s shares and then selling them back to the company at a premium over the market price, often to prevent a hostile takeover bid. This contentious tactic is more prevalent in jurisdictions like the United States, where companies can more freely repurchase their shares.
A hostile takeover is an acquisition attempt by another company or raider against the wishes of the current management and board of directors.
In corporate mergers and acquisitions, the Pac-Man Defense refers to a defensive strategy where the target company aims to counter the hostile takeover attempt by making a bid to acquire the aggressor.
A poison pill is a defensive strategy employed by a target company to thwart hostile takeover attempts by making the company's stock less attractive to the acquirer.
A raider is an individual or organization that seeks to take over a company, often through aggressive strategies and hostile takeover bids, to capitalize on undervalued assets.
A corporate strategy used to avoid a hostile takeover by disposing of valuable assets, often resulting in a significant decline in the company's value and earnings power.
A self-tender offer is a strategic financial maneuver used by companies to purchase a portion of their own stock from shareholders, often to thwart hostile takeover attempts.
Staggered directorships serve as a potent anti-takeover measure by ensuring that directors' terms are staggered, thus preventing a hostile bidder from easily gaining control of the board, even with a controlling interest.
A company that is the subject of a takeover bid by another company. Understanding the dynamics and implications of being a target company is crucial for shareholders, managers, and potential acquirers.
