squeeze-out

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Squeeze-Out

In joint stock companies, to buy the stocks of a minority group of shareholders without their necessary consent. A group of shareholders owning the large majority of the company have the ability to squeeze out remaining shareholders. The percentage of shareholders needed varies between jurisdictions. For example, the United Kingdom requires shareholders owning 90% of the company to consent to squeeze out the other shareholders, while Germany requires 95%. Minority shareholders receive compensation in return for surrendering their shares.

squeeze-out

The forcing of stockholders to sell their stock. Majority holders of a company's stock may attempt a squeeze-out of minority stockholders in order to take complete control of the firm.
References in periodicals archive ?
The delistings and squeeze-outs likely to follow will probably lead to lawsuits, because there are different methods for the assessment of a company's price and remaining investors want to obtain the highest price possible, shareholder protector Wilhelm Rasinger told the newspaper.
We also take account of the upcoming increase in equity and spending on share buy-backs and squeeze-outs.
Table 2 repeats the means for premiums offered by category of operation, based on the data analyzed in the preceding sections: tender offers in cash under the normal and simplified proceedings, tender offers in shares in the normal proceedings, tender offers in cash under the simplified proceedings, tender offers under the normal proceedings, squeeze-outs and all tender offers (except those in shares under the simplified proceedings).
The Rights Agreement is designed to assure that AeroCentury's stockholders receive equal treatment in the event of any proposed takeover of AeroCentury, and to guard against partial tender offers, squeeze-outs and other abusive tactics to gain control of AeroCentury that could impair the Board's ability to represent stockholders' interests fully," said Neal D.
Assuming less than 90% of shareholders adopt the merger resolution and the Board proceeds, this would render the newly passed law on squeeze-outs (a direct transposition of an EU directive) irrelevant.
The Rights Agreement is designed to assure that Saba's stockholders receive equal treatment in the event of any proposed takeover of Saba, and to guard against partial tender offers, squeeze-outs and other abusive tactics to gain control of Saba that could impair the Board's ability to represent stockholder's interests fully," said Bobby Yazdani, Chairman and Chief Executive Officer.
Bagerdjian, New 360's, stated: "The rights are designed to assure that all of New 360's shareholders receive fair and equal treatment in the event of any proposed takeover of New 360 and to guard against partial tender offers, squeeze-outs, open market accumulations and other abusive tactics to gain control of New 360 without paying all shareholders a control premium.
All these powers would give the board extra possibilities for squeeze-outs.
In addition, it analyzes the fairness rule and burden shifting, state anti-takeover legislation, leveraged buyouts, shareholder reliance on fairness opinions provided to the board of directors by financial advisers, squeeze-outs, restructurings, the concept of the "level playing field," the duty of loyalty owed by directors to shareholders of a corporation, applicability of the business judgment rule when the board of directors resists a hostile bid for control, an overview of the SECs "Regulation M-A Release," and the impact of recent court decisions.
The total investment of the squeeze-outs of AXA Konzern's and KVAG's minority shareholders of Euro 144 million will be self-funded, and slightly accretive to AXA's EPS.
The stockholder rights plan is similar to rights plans adopted by many other companies and is designed to ensure that Sourcefire's stockholders receive equal treatment in the event of any proposed takeover, and to guard against partial tender offers, squeeze-outs and other abusive tactics to gain control of Sourcefire that could impair the Board's ability to represent stockholders' interests fully," added Mr.
We thought that the days of coercive minority squeeze-outs and self-interested management buyouts were over.