Related Words

Acquirer: A firm or individual that is acquiring something.

Staggering Maturities: Occurs when a portion of directors are elected periodically, instead of all at once. Board terms are often staggered in order to thwart unfriendly takeover attempts, since potential acquirer . . . View Full Definition

Slippage: Often used in risk arbitrage. Potential takeover target that has not yet been approached by an acquirer. Such a company usually has particularly attractive features, such as a large amount o . . . View Full Definition

Risk Arbitrage: Traditionally, the simultaneous purchase of stock in a company being acquired and the sale of stock of the acquirer. Modern risk arbitrage focuses on capturing the spreads between the market . . . View Full Definition

Target Firm: Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it m . . . View Full Definition

Scorched-Earth Policy: Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off . . . View Full Definition

Tariff: A schedule of prices/fares.

White Sheets: A friendly potential acquirer sought out by a target firm that is threatened by a less welcome suitor.

Two-Tier Tax System: Takeover bid in which the acquirer offers to pay more for the shares needed to gain control than for the remaining shares, or to pay the same price but at different times in the merger perio . . . View Full Definition

Tax Haven: A merger or consolidation in which (1) the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (2) each seller w . . . View Full Definition