antitakeover statute

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Antitakeover Statute

A law at the state level prohibiting hostile takeovers in certain circumstances. Different states have different antitakeover statutes, but most involve some way of limiting a potential acquirer's ability to take a bid directly to shareholders. Critics contend that these laws can work against shareholder interest, while proponents maintain that they promote stability in publicly-traded companies. Antitakeover statutes can only apply to companies registered in states having such laws.

antitakeover statute

A state law that makes it easier for a firm based in that state to fend off a takeover hostile to the firm's management. Such a statute may actually penalize shareholders since acquisition-minded firms or individuals may be less likely to make an offer for the firm's stock.
References in periodicals archive ?
Anti takeover statutes and voting restrictions on large shareholders have now been passed in 23 states, though none of them are as sweeping as the Pennsylvania statute.
Forbes called it "socialism Pennsylvania style," Business week labeled it "a dangerous game," and the New York Times opined that the anti takeover statute was the "sorriest example of state intervention" The mighty wallets of the financial world--including the United Shareholders of America, corporate raiders like T.