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Simple English definitions for legal terms

transactional takeover defense

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A quick definition of transactional takeover defense:

Transactional takeover defense is a strategy used by companies to make it harder for someone to take over their business. This can be done by making changes to the company's finances or operations, such as increasing the price of their shares or buying expensive assets. These changes are designed to discourage potential buyers and protect the company from being taken over without their consent.

A more thorough explanation:

Transactional takeover defense is a strategy used by corporations to prevent hostile takeover attempts. It involves financial or operational transactions that make it more difficult for a potential bidder to acquire the company. This can be done by raising the company's share price, paying off the bidder, or reducing their potential profit.

  • Issuing new shares of stock: By increasing the number of shares available, the company can dilute the bidder's ownership and make it more expensive for them to acquire a controlling stake.
  • Acquiring expensive assets: The company can use its cash reserves to purchase assets that are not essential to its operations but would be costly for a potential bidder to acquire.
  • Poison pill defense: This involves creating a financial instrument, such as stock options or convertible bonds, that would become very expensive for the bidder to exercise if they were to acquire a controlling stake in the company.

These examples illustrate how a company can use financial and operational transactions to make it more difficult for a potential bidder to acquire the company. By raising the cost of acquisition, the company can discourage hostile takeover attempts and maintain control over its operations.

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Dkk
15:46
Woo, it took almost 24 hours but my butthole is feeling good again! Just wanted to update y'all on my struggle.
[] baddestbunny
15:52
Ew
Dkk
15:56
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soap
16:58
Thank you for the update
Dkk
17:04
Welcome.
Holding out strong for that 11 p.m. Sunday night wave.
soap
17:20
Do the admissions offices close on Veterans Day?
I think someone here was really interested in Cornell Law. I forgot their username now but I just talked to the Cornell admissions rep at the Houston LSAC fair and apparently 2/3 of people who interview at Cornell ultimately get in.
soap
17:21
Hello 🫡
soap
17:21
Thank you for your service, you’re a real one
soap
17:23
I wonder what it’s dependent on? Are the 2/3 chosen on stats, or interview performance, or more holistically?
I'm honestly not sure
[] baddestbunny
17:31
is Cornell a school where only people who interview get in?
I think so
She said historically a quarter get interview invites and then two thirds of those people get in.
soap
17:35
Did she say anything regarding if decisions will start to come out soon?
17:47
username changed
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cockenheimer
17:56
when u boutta detonate some bomb dick u be like
17:56
cockenheimer
[] baddestbunny
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sloppenheimer
17:58
*tips cap*
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seing smells rn
18:04
and smelling sights
@soap: I asked and she did not have an answer
soap
18:10
aw man. I hope it’s soon…
I'm sure it will be
[] baddestbunny
18:26
how soon is now
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