mergers & acquisitions

poison pill

A poison pill is a corporation’s defensive strategy used against a hostile takeover. When a hostile takeover tries to merge a target company by buying its stocks publicly or privately, the target company could issue preferred stocks that will...

raider

A raider is a person or entity that attempts a hostile takeover of a company. Raiders usually target companies with potentially valuable assets, acquire funding to buy enough shares for controlling interest in the target and then break up the...

Sherman Antitrust Act

Sherman Antitrust Act of 1890 is a federal statute which prohibits activities that restrict interstate commerce and competition in the marketplace. It outlaws any contract, conspiracy, or combination of business interests in restraint of...

syndicate

A syndicate is an association or a joint venture formed to achieve a common business objective. For example, a syndicate may be formed by a group of investment bankers to underwrite and distribute new shares.

[Last updated in March...

takeover

A takeover occurs when the controlling interest in a corporation shifts from one party to another. Takeovers are categorized as either hostile or friendly depending on whether the management of the company being taken over is a willing...

tender offer

Tender offer is a public offer to buy shares of a corporation, usually at above market price and with the intention of gaining controlling interest in the target corporation. An acquirer making a tender offer for more than 5% of a corporation...