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The Power of Defense
11
greenmail : the firm buys back its own stock from a potential acquirer, often at a premium, with the provision that the seller promises not to acquire the company for a specified period
standstill agreement : contracts where acquirer, for a fee, agrees to limit its holdings in the target. These usually leads to cessation of takeover attempts. Announcements to this had a negative effect on stock price
white knight : a friendly suitor who are arranged to acquire the target firm in a hostile acquisition. It is willing to pay a higher purchase price or it might promise not to lay off employees, fire managers or sell off divisions
white squire : a third party might be invited to make a significant investment in the firm, under the condition that it votes with management. It offers shares at a favorable price
recapitalization : target management issue debt to pay out a dividend that will fend off takeover in either the rise of stock that makes acquisition less attractive to bidder
exclusionary self tender : firm makes a tender offers for a given amount of its stocks while excluding targeted stockholders
assets restructuring : firms may sell off existing assets or buy new ones to avoid takeover
leveraged buyouts : publicly owned stock in a firm is purchased by a private group, (existing management), the stock is taken off the market (delisted) and purchase is financed by debt.
corporate charter : this anti take over amendments has no adverse effects to stock price
golden parachutes : lucrative benefit
poison pill : a right granted to target firm’s stockholders to buy shares in the merged firm at a bargain price. The right dilutes the stock that the bidding firm loses money on its shares. Thus the wealth is transferred from the bidder to the target
The Power of Defense
Across:5. | contracts where acquirer, for a fee, agrees to limit its holdings in the target. These usually leads to cessation of takeover attempts. Announcements to this had a negative effect on stock price |
| 11. | firms may sell off existing assets or buy new ones to avoid takeover |
| | Down:1. | this anti take over amendments has no adverse effects to stock price | 2. | target management issue debt to pay out a dividend that will fend off takeover in either the rise of stock that makes acquisition less attractive to bidder | 3. | firm makes a tender offers for a given amount of its stocks while excluding targeted stockholders | 4. | a third party might be invited to make a significant investment in the firm, under the condition that it votes with management. It offers shares at a favorable price | 6. | publicly owned stock in a firm is purchased by a private group, (existing management), the stock is taken off the market (delisted) and purchase is financed by debt. |
| 7. | a friendly suitor who are arranged to acquire the target firm in a hostile acquisition. It is willing to pay a higher purchase price or it might promise not to lay off employees, fire managers or sell off divisions | 8. | lucrative benefit | 9. | a right granted to target firm’s stockholders to buy shares in the merged firm at a bargain price. The right dilutes the stock that the bidding firm loses money on its shares. Thus the wealth is transferred from the bidder to the target | 10. | the firm buys back its own stock from a potential acquirer, often at a premium, with the provision that the seller promises not to acquire the company for a specified period |
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© 2015
PuzzleFast.com, Noncommercial Use Only
The Power of Defense
Across:5. | contracts where acquirer, for a fee, agrees to limit its holdings in the target. These usually leads to cessation of takeover attempts. Announcements to this had a negative effect on stock price |
| 11. | firms may sell off existing assets or buy new ones to avoid takeover |
| | Down:1. | this anti take over amendments has no adverse effects to stock price | 2. | target management issue debt to pay out a dividend that will fend off takeover in either the rise of stock that makes acquisition less attractive to bidder | 3. | firm makes a tender offers for a given amount of its stocks while excluding targeted stockholders | 4. | a third party might be invited to make a significant investment in the firm, under the condition that it votes with management. It offers shares at a favorable price | 6. | publicly owned stock in a firm is purchased by a private group, (existing management), the stock is taken off the market (delisted) and purchase is financed by debt. |
| 7. | a friendly suitor who are arranged to acquire the target firm in a hostile acquisition. It is willing to pay a higher purchase price or it might promise not to lay off employees, fire managers or sell off divisions | 8. | lucrative benefit | 9. | a right granted to target firm’s stockholders to buy shares in the merged firm at a bargain price. The right dilutes the stock that the bidding firm loses money on its shares. Thus the wealth is transferred from the bidder to the target | 10. | the firm buys back its own stock from a potential acquirer, often at a premium, with the provision that the seller promises not to acquire the company for a specified period |
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© 2015
PuzzleFast.com, Noncommercial Use Only