Standstill Agreement
Over a million managers and consultants are working together on management issues via 12manage each month...
|
|
Standstill Agreement |
Over a million managers and consultants are working together on management issues via 12manage each month... |
Description of Standstill Agreement. Explanation. |
Definition Standstill Agreement. Description.
A Standstill Agreement is used by a corporation that is the target of a (hostile) takeover to limit the number of shares that the potential acquirer can purchase for a certain time period. In many cases, the target firm purchases the potential raider’s shares at a premium price.
Regular shareholders tend to dislike this type of agreements, because it limits the potential returns on investment available through takeover. On the other hand, shareholders are typically offered higher holdings and benefits by the target firm. Forum Comment on this PageCompare with: Anti Hostile Takeover Mechanisms |
| Return to Management Hub: Finance & Investing | Strategy
More on Management | Return to Management Dictionary | |
|
End of description Standstill Agreement. An explanation. |
|
|
|
|
