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Flashcards in Lecture 13 Deck (7)
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Definition of a Toelhold bidding?

The bidder acquires shares in the target before making an offer. This can lead to a bidding advantage versus competitors


Definition of Bear hug?

The bidder approaches the target management in friendly negotiations but threatens to launch a hostile bid if negotiations break down


Definition of Proxy Fight?

A toehold owner attempts to use his voting rights to garner support from other shareholders to oust opposing target management


Termination fees and Stock Lockus?

The bidder is awarded a fee or stock in the target in case the bid is rejected. This can only be granted by target management


Definition of White Knight?

Friendly potential acquiror sought by a target company threatened by an unwelcome suitor.


Definition of Shark Repellent?

Amendments to a company charter made to forestall takeover attempts


Definition of Poison Pill

Measure taken by a target firm to avoid acquisition; for example, the right for existing shareholders to buy additional shares at an attractive price if a bidder acquires a large holding