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Definition of 'Busted Takeover'
A highly leveraged takeover that, to go through, requires a selling off of some of the acquired company's assets.
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Investopedia explains 'Busted Takeover'
For example, let's say the Cory's Tequila Company (CTC) wants to acquire the TSJ Sports Conglomerate (let's assume CTC is looking to diversify). However, CTC must leverage itself highly to finance the deal. As such, as a term of the deal, CTC must agree to sell off TSJ's two ice hockey teams and give the proceeds to the financier, paying back part of the amount that was lent.
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Search results for 'Busted Takeover'
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http://www.investopedia.com/articles/financial-theory/08/merger-acquisition-disasters.asp
... This article presents a few examples of busted deals in recent history ... reading, see
The Merger - What To Do When Companies Converge, Trade Takeover Stocks With ...
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