crown jewel

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Crown jewel

A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover attempts, these entities typically are the main objective of the acquirer and may be sold by a takeover target to make the rest of the company less attractive. See: Scorched earth policy.

Crown Jewel

1. A particularly valuable or important asset that a company owns. For example, a car manufacturer's three best producing factories may be considered its crown jewels.

2. Describing an antitakeover measure in which a company sells many or all of its crown jewel assets. A crown jewel policy is designed to make the company less attractive to potential acquirers. The obvious disadvantage to a crown jewel policy is the possibility that, even if the company remains independent, the lack of its crown jewels may render it unable to maintain its operations easily. It is a type of scorched earth policy. See also: Poison pill, Suicide pill.

crown jewel

1. A prized asset of a company.
2. Used to refer to a part of a business that is sought by another firm or an investor in a takeover attempt that is hostile to the target firm's management. Compare scorched earth.
References in periodicals archive ?
The Posturepedic Crown Jewel is touted as having fashionable, fine furniture styling, which makes it a natural for a print ad campaign.
The Brazilian cable sector is ripe for consolidation, but Vivax, the segment's crown jewel is now gone says Pyramid Research's latest Analyst Insight.
It has since become the crown jewel of Santa Clarita's parks and recreation facilities.
Forest Service Regional Office today upheld the Record of Decision (ROD) and Environmental Impact Statement (EIS) for Battle Mountain Gold Company's (NYSE: BMG) Crown Jewel gold mine project.
Among the most notable transactions the group negotiated included the sale of the Plaza Hotel, the crown jewel of Manhattan's Fifth Avenue; the acquisition of 717 Fifth Avenue, a 26-floor office building and the sale of 350 Madison Avenue, a 25-floor office building neighboring Grand Central Terminal.
Los Angeles' newest architectural icon debuted last week, amid all the hoopla and adjectives one might expect from the unveiling of the crown jewel of downtown L.
EffJohn, meanwhile, has announced the sale of sister ship Crown Jewel to Star Cruises of Malaysia.