antitakeover statute

(redirected from Anti-Takeover Statute)

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 ?
Therefore, we ask that you take action to make the Massachusetts anti-takeover statute inapplicable to our offer and confirm that Genzyme's 2011 annual meeting of shareholders, including the election of all directors, will be held on schedule on the fourth Thursday of May (May 26, 2011), as provided in your Bylaws.
of America, (175) which upheld the validity of an Indiana anti-takeover statute, at least twenty-nine states have adopted similar provisions.
Simon challenged the validity of the family's controlling stake, filing a lawsuit alleging they violated Michigan's anti-takeover statute.
The Oregon Control Share Act is an anti-takeover statute that provides for the forfeiture of voting rights by certain acquirers of the Company's voting stock.
The Board took this action to clarify that this anti-takeover statute does not apply to the Company.
In its letter, Steel "again request(ed)" that the Board immediately waive the Ohio anti-takeover statute and allow anyone, including Steel Partners, to purchase more than 10% of GenCorp's outstanding stock without the purchaser of the 10%+ interest being considered an "Interested Stockholder" so that the purchaser may be allowed (under Ohio law) to merge with or acquire GenCorp within three years of it becoming a 10%+ stockholder.
50 per share offer, they somehow inadvertently triggered this particular Michigan anti-takeover statute -- and thus these longstanding shareholders all deserve to be disenfranchised.
The Trusts announced that they do not expect to consummate their offer unless they are successful in obtaining a court ruling against the poison pill and the application to the Trusts of the Maryland anti-takeover statute.
Taubman stated: "The Simon lawsuit is a cynical attempt to turn a state anti-takeover statute into a hostile takeover device.
Netro also did not disclose the effect on Global Telecom of the Delaware anti-takeover statute, which prohibits business combinations with stockholders owning more than 15% of a corporation's stock.
21 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today announced that a preliminary vote count by the independent inspector of election indicated that Conrail (NYSE: CRR) shareholders overwhelmingly defeated the Conrail management proposal to "opt-out" of the fair value provision of the Pennsylvania anti-takeover statute.
The Norfolk Southern proposal is contingent only on the defeat of Conrail management proposals asking shareholders to "opt out" of the fair value provision of Pennsylvania anti-takeover statute and to allow Conrail management to adjourn the special shareholder meeting scheduled for Friday.