|
|
Flip-in |
Description of Flip-in. Explanation. |
|
Definition Flip-in. Description.
A Flip-in is an anti-takeover technique described in the Corporate Charter or bylaws that gives certain shareholders of the targeted company the right to buy additional shares in the target company at a deep discount, usually half price, if a hostile bidder acquires a certain threshold (usually 15 to 20 percent) of the outstanding shares.
The Flip-in plan's deterrent effect thus comes from the dilution caused in the target shares held by the acquirer.
No potential acquirer or other shareholder will risk to trigger a Flip-in poison pill by accumulating more than the threshold level of shares because of the threat of massive discriminatory dilution. The threshold level therefore effectively sets a ceiling on the amount of stock that any shareholder can accumulate before launching a proxy contest. Forum Comment on this PageCompare with: Anti Hostile Takeover Mechanisms | Flip-over | Targeted Repurchase |
| Return to Management Hub: Finance & Investing | Strategy
More on Management | Return to Management Dictionary | |
|
End of description Flip-in. An explanation. |
|
|
|
|
