Term
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Definition
- Corporate charter
– Establishes conditions that allow
for a takeover
– Supermajority voting requirement
Staggered board
- Targeted repurchase aka greenmail
- Standstill agreements
- Poison pills (share rights plans)
- Leveraged buyouts
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Term
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Definition
- Control of a firm transfers from one group
to another
- Merger or consolidation
- Acquisition of stocks
- Acquisition of assets
- Proxy contest
- Going private
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Term
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Definition
| another acquirer who is friendly and might not fire existing management after M&A. |
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Term
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Definition
| Friendly investors who will support existing management and fight against hostile takeover |
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Term
| Financial distress (FinD) |
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Definition
(EBIT+DepreciaSHn)/Interest expense
- FinD is a situaSHn where a firm’s
OCF R not sufficient 2 s@isfy
cur obligaSHs, & the firm is 4ced 2 take
corrective acSHn.
- FinD may lead a firm 2 default on a
contract, & it may involve FIN-SHl restructuring Btw the firm, its creditors,& its equity INVR.
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