A Contract That Limits the Holdings of a Bidder to a Minority

question 187

Multiple Choice

A contract that limits the holdings of a bidder to a minority stake in the target firm is called a:

• A) Supermajority amendment.
• B) Standstill agreement.
• C) Greenmail provision.
• D) Poison pill amendment.
• E) White knight provision.

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Definitions:

Value

The quantitative or qualitative worth, significance, or utility of something.

Strike Price

The predetermined price at which an option contract can be exercised to buy or sell the underlying asset.

Option's Value

The intrinsic and time value associated with an options contract, determining the premium at which it trades on the market.

Variable

An element, feature, or factor that is liable to vary or change.