Flashcards in Lecture 13 Deck (7)
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