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War Chest

   Also found in: Dictionary/thesaurus, Wikipedia 0.02 sec.
War chest
Cash kept aside for a takeover or for defense against a takeover bid.
war chest
Liquid assets accumulated by a firm to use in a potential acquisition or in defending itself against a takeover attempt. A substantial war chest adds security and enhances investment opportunities but is likely to be a drain on short-term profitability.
War Chest
Informal; money a corporation sets aside to pay for or defend against a hostile takeover. A war chest is highly liquid, and while it can cut into short-term profits, it may open up investment opportunities for the long-term. The term is commonly used in journalism.


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