Bon Voyage Bonus

Dictionary Says

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 Says

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.

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Related Definitions

  1. Greenmail

    An antitakeover ...
  2. Corporate Raider

    An investor who ...
  3. Hostile Takeover

    The acquisition ...
  4. Bear Hug

    An offer made by ...
  5. Carl Icahn

    An American ...
  6. Black Knight

    A company that ...
  7. Bankmail

    An agreement ...
  8. Poison Pill

    A strategy used ...
  9. Boom

    A period of time ...
  10. Industry

    A classification ...

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