Anti-Takeover Statute

AAA

DEFINITION of 'Anti-Takeover Statute'

A set of state regulations that prevent or deter companies from attempting hostile takeovers. These regulations vary across state lines and typically affect only the companies incorporated within the state

INVESTOPEDIA EXPLAINS 'Anti-Takeover Statute'

Although these statutes are meant to restrict predatory takeovers, they will sometimes be detrimental to shareholders by preventing companies from partaking in profitable or justified takeovers.

RELATED TERMS
  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Revlon Rule

    The legal requirement that a company’s board of directors make ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for ...
  4. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  5. Macaroni Defense

    An approach taken by a company that does not want to be taken ...
  6. Saturday Night Special

    An obsolete takeover strategy where one company attempted a takeover ...
Related Articles
  1. Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. Investing Basics

    The Merger - What To Do When Companies ...

  3. Active Trading Fundamentals

    Trade Takeover Stocks With Merger Arbitrage

  4. Options & Futures

    Pinpoint Takeovers First

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center