Bon Voyage Bonus

AAA

DEFINITION of 'Bon Voyage Bonus'

Cash, securities or other assets paid to an individual or group for ceasing a particular activity. A bon voyage bonus is most often associated with hostile takeovers, with the target company paying the traider for not making further attempts to force a takeover for a specific period of time. It is often considered the payment to a greenmailer.

INVESTOPEDIA EXPLAINS 'Bon Voyage Bonus'

Paying a bon voyage bonus to a greenmailer is one of several tactics that a target company can employ to fend off a takeover, though it can be very costly. In order to cease a takeover bid, a corporate raider will most likely demand a premium over the current share price. Some companies may include an anti-greenmail provision in their charters, so as to prevent this sort of situation from arising.

RELATED TERMS
  1. Corporate Raider

    An investor who buys a large number of shares in a corporation ...
  2. Bankmail

    An agreement made between a company planning a takeover and a ...
  3. Bear Hug

    An offer made by one company to buy the shares of another for ...
  4. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  5. Black Knight

    A company that makes a hostile takeover offer for a target company. ...
  6. Greenmail

    An antitakeover measure that arises when a large block of stock ...
Related Articles
  1. Fundamental Analysis

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  2. Fundamental Analysis

    Carl Icahn's Investing Strategy

    Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
  3. Options & Futures

    Activist Investors: A Good Or Bad Thing?

    When a large stakeholder is dissatisfied with a company's management, it may take matters into its own hands.
  4. Mutual Funds & ETFs

    Corporate Takeover Defense: A Shareholder's Perspective

    Find out the strategies corporations use to protect themselves from unwanted acquisitions.
  5. Mutual Funds & ETFs

    Could Your Company Be A Target For Activist Investors?

    Find out why certain companies are targeted by these investors.
  6. Stock Analysis

    Breaking Down the Halliburton Baker Hughes Deal

    Halliburton is using a downturn to get bigger and stronger in the long term, and the company is getting Baker Hughes at a reasonable price as a result.
  7. Brokers

    Key Differences Between M&A Advisors And Business Brokers

    For a buy, sale or partnership for one's business, one needs brokers and advisors to proceed ahead. Here are the key differences between business brokers and M&A advisors.
  8. Professionals

    What's the average salary of a bank teller?

    Read this article to find out more about average bank teller salaries, median hourly wage rates and potential future career prospects.
  9. Professionals

    What's the average salary of a business operations manager?

    Read about the average yearly salary of business operations managers, and find out which locations and industries offer the best pay for these professionals.
  10. Professionals

    What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels of compensation.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center