![]() |
Flip-inKnowledge Center |
9 items • 11.075 visits
What is Flip-in? Meaning.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.
Compare with: Anti Hostile Takeover Mechanisms | Flip-over | Targeted Repurchase |
|
Return to Management Hub: Finance & Investing | Strategy & Innovation More on Management | Return to Management Dictionary |
This ends our Flip-in summary and forum. |
About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2023 12manage - The Executive Fast Track. V16.1 - Last updated: 28-3-2023. All names ™ of their owners.