Assented stock refers to a security, typically an ordinary share, where the owner has agreed to the terms of a takeover bid. Different prices may be offered for assented and non-assented stock during takeover negotiations.
A 'Bear Hug' in corporate takeovers refers to an acquisition offer made by a potential suitor at a price significantly higher than the target company's current market value. If the target company's management resists the offer, it risks violating its fiduciary duty to act in the shareholders' best interests.
Corporate reorganization involves significant changes in the structure of a corporation through mergers, acquisitions, divisive acquisitions, or other forms of restructuring.
Hewlett-Packard, more commonly known as HP, is a leading manufacturer of computers and printers, headquartered in Palo Alto, California.
Horizontal integration refers to the strategy where a company acquires or merges with other companies operating at the same level in an industry. It aims to consolidate resources, reduce competition, and increase market share.
A Leveraged Buyout (LBO) involves the acquisition of a company utilizing a significant amount of borrowed money. Typically, the assets of the acquired company serve as collateral, and the intention is to use the company's cash flow to repay the obtained loans.
A merger involves the combination of two or more businesses on an equal footing to create a new entity where shareholders mutually share risks and rewards without any party obtaining control over another.
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.
In the USA, a method of accounting for business combinations in which cash and other assets are distributed or liabilities incurred. The purchase method is used if the criteria are not met for the pooling-of-interests method.
Push Down Accounting refers to the practice in the USA of incorporating the fair value adjustments on acquisition, including goodwill, made by the acquiring company into the financial statements of the acquired subsidiary.
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.
A vendor placing is a strategic financial maneuver used for acquiring another company or business, involving the placement of issued shares with prearranged investors as an alternative to direct cash transactions.
