Simple English definitions for legal terms
Read a random definition: comparative interpretation
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.
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.
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.