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LSDefine

Simple English definitions for legal terms

bear hug

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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

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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