Sale Of Crown Jewels

Filed Under » ,
Dictionary Says

Definition of 'Sale Of Crown Jewels '

A takeover-defense tactic that involves the sale of the target company's prized and most coveted assets - the "crown jewels" - so as to reduce its attractiveness to the hostile bidder. The sale of a company's best assets will leave it as a mere shadow of its former self. This is a type of "kamikaze" defense tactic, which inflicts potentially irreversible damage on a company to prevent it from being acquired by a hostile party.
Investopedia Says

Investopedia explains 'Sale Of Crown Jewels '

This tactic is sometimes used by conglomerates, which often attract hostile bidders because they can trade at a price below their break-up value due to the "conglomerate discount." A potential pitfall of this tactic is that a quick sale of prized assets may fetch a price far below what they are actually worth.

Articles Of Interest

  1.

    Trade Takeover Stocks With Merger Arbitrage

    This high-risk strategy attempts to profit from price discrepancies that arise during acquisitions.

  2. Trademarks Of A Takeover Target

    These tips can lead you to little companies with big prospects.

  3. Pinpoint Takeovers First

    Use these seven steps to discover a takeover before the rest of the market catches on.

  4. Corporate Takeover Defense: A Shareholder's Perspective

    Find out the strategies corporations use to protect themselves from unwanted acquisitions.

  5. War's Influence On Wall Street

    Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common.

  6. Cashing In On Corporate Restructuring

    Companies use M&As and spinoffs to boost profits - learn how you can do the same.

  7. Nokia Buys Out Siemens, Are Phones Now On The Block?

    In buying Siemens' share of Nokia Siemens Network, Nokia may have just bought its future

  8. Valeant Eyes Bausch & Lomb

    Canadian pharmaceutical company Valeant has made a name for itself through acquisitions. On May 27 it announced that it was buying Bausch & Lomb for $8.7 billion making it a global leader in ...

  9. Sears' Losses Widen In Q1 - Time To Merge With JC Penney?

    Sears Holdings delivered another brutal quarter May 23. CEO and majority owner Edward Lampert has his hands full trying to revive a truly broken department store. Rumor has Neiman Marcus and ...

  10. Arbitrage Squeezes Profit From Market Inefficiency

    This influential strategy capitalizes on the relationship between price and liquidity.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center