. Bear Hug: definition of business.
What does the term bear hug mean in finance? The term "bear hug" is often used in the context of mergers and acquisitions, and refers to a hostile takeover attempt in which the acquirer offers a very high price for the target company's shares in an effort to pressure the target's board into accepting the offer. Bear hugs can be an effective tactic in takeover attempts, but they can also backfire if the target company's shareholders refuse to sell at the high price and the acquirer is forced to abandon the bid.
Why is it called bear hug?
The term "bear hug" is used to describe a hostile takeover bid in which the acquiring company offers to buy the target company for a very high price, usually much higher than the current market price. The offer is usually made in writing and is usually accompanied by a strongly worded letter from the CEO of the acquiring company to the CEO of the target company, urging the target company to accept the offer.
The term "bear hug" is used because the offer is usually so high that it is difficult for the target company to refuse, and because the acquiring company is often much larger than the target company, making it difficult for the target company to defend itself.
What was the twitter poison pill?
The twitter poison pill was a defensive measure put in place by the company to prevent a hostile takeover. It was a form of shareholder rights plan, also known as a "poison pill", which would have been triggered if an outside party acquired a stake of more than 10% in the company. The plan would have diluted the shares of the acquiring party, making the takeover much more difficult and expensive. The poison pill was put in place in 2016, and was later extended in 2017. It was eventually revoked in 2018.
Why is it called poison pill? The "poison pill" is a defensive tactic used by a company to make itself less attractive to a hostile takeover bid. The poison pill makes the target company's shares less attractive to the potential buyer by making them more expensive, or by giving existing shareholders special rights that make the takeover more difficult. The poison pill is usually put in place by the target company's board of directors, and can be triggered by a bid that is below a certain price, or when a bidder acquires a certain percentage of the target company's shares.
The term "poison pill" comes from the idea that the pill is poisonous to the hostile bidder, because it makes the takeover more difficult and expensive. The poison pill is a controversial tactic, and has been challenged in court by shareholders and activists who argue that it is used to protect the interests of management and directors, rather than shareholders. What is white knight in finance? A white knight is a company that acquires another company in order to prevent that company from being acquired by a hostile bidder. A white knight may also be referred to as a "friendly bidder."