Rump

DEFINITION of 'Rump'

The name given to the group of investors refusing to tender their shares into a corporate action, such as a merger or acquisition.

BREAKING DOWN 'Rump'

Should the quantity of rump shares be large enough, a corporate action may be stalled or halted.

RELATED TERMS
  1. Proration

    A situation during a corporate action in which the available ...
  2. Tender Offer

    An offer to purchase some or all of shareholders' shares in a ...
  3. Hedged Tender

    A strategy in a tender offer where an investor short sells a ...
  4. Mergers And Acquisitions - M&A

    A general term used to refer to the consolidation of companies. ...
  5. Creeping Tender Offer

    A takeover strategy involving the gradual acquisition of the ...
  6. Legal Tender

    Any official medium of payment recognized by law that can be ...
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RELATED FAQS
  1. What happens to the shares of stock purchased in a tender offer?

    Learn what a tender offer is, whether it is a good idea to accept a tender offer and what happens to the shares of stock ... Read Answer >>
  2. How is a tender offer used by an individual, group or company seeking to purchase ...

    Learn how tender offers are used in takeover attempts, and understand the difference between a hostile takeover and a friendly ... Read Answer >>
  3. What usually happens to the price of a stock when a tender offer for shares of the ...

    Learn what happens to the price of a stock when a tender offer is made public. Some of the most contentious takeovers have ... Read Answer >>
  4. Why would it be in the interest of shareholders to accept a tender offer?

    Learn when it is in the best interests of shareholders to accept a tender offer. A tender offer is a bid to buy a large portion ... Read Answer >>
  5. What is the difference between a merger and an acquisition?

    Read about the legal and practical differences between a corporate merger and corporate acquisition, two terms often used ... Read Answer >>
  6. Why are the terms 'merger' and 'acquisition' always used together if they describe ...

    Learn about mergers and acquisitions and how these two corporate actions differ based on the size and participation of the ... Read Answer >>
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