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Rump

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

Notes:

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

See also: Acquisition, Corporate Action, Merger, Tender, Tender Offer

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Rump

Usually used in the context of a merger or acquisition. A group of shareholders who refuse to tender their shares for a merger or acquisition. In a merger of Company A and Company B for example, if a sufficient number of Company B shareholders do not tender their shares, the new company will not be able to access the cash flows of Company B.