Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

bear hug

Read a random definition: neglected child

A quick definition of bear hug:

Bear hug: A way for one company to take over another company by offering to buy their shares for a much higher price than they are worth. This can be a hostile tactic to force the other company to accept the offer. The reverse bear hug is when the target company responds by saying they are willing to negotiate, but only if the price is much higher than what was offered. This is often used as a way to prevent a takeover.

A more thorough explanation:

Definition: Bear hug is a term used in business to describe a takeover strategy where the acquiring company offers a price per share that is much higher than the current market value. The intention is to pressure the target company into accepting the offer.

Example: Company A wants to acquire Company B. Company A offers to buy Company B's shares at $50 per share, even though the current market value is only $30 per share. This is a bear hug strategy because Company A is offering a much higher price than what Company B's shares are currently worth, hoping that Company B will feel pressured to accept the offer.

Reverse Bear Hug: Sometimes, the target company may respond to a bear hug offer by showing a willingness to negotiate but demanding a much higher price than what was offered. This is called a reverse bear hug and is usually an anti-takeover tactic.

Example: In response to Company A's bear hug offer, Company B may say that they are willing to negotiate but will only accept an offer of $80 per share. This is a reverse bear hug because Company B is demanding a much higher price than what Company A offered, making it more difficult for Company A to acquire Company B.

These examples illustrate how bear hug and reverse bear hug strategies are used in business to acquire or defend against takeovers. They show how companies can use different tactics to try and gain an advantage in a takeover situation.

bearer security | bear market

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.