Toehold purchase

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Toehold purchase

Often used in risk arbitrage. Accumulation by an acquirer of less than 5% of the shares of a target company. Once 5% is acquired, the acquirer must file with the SEC and other agencies to explain its intentions and notify the acquiree. See: Rule 13d.

Toehold Purchase

A purchase of less than 5% of the stock of a publicly-traded company. This is called a toehold purchase because one is not required to register and explain one's purchase to the SEC until one meets the 5% threshold. This allows one to begin the process of a potential hostile takeover by accumulating stock quietly, though one eventually would have to disclose one's intent.

toehold purchase

The purchase of less than 5% of the outstanding common shares of a target company before establishing a much larger stake. A toehold purchase allows a party to buy stock in a company without filing a notice with the SEC and with the target company.

Toehold purchase.

A toehold purchase is one in which an individual investor or investment firm caps holdings in a potential target company at less than 5% of the company's outstanding stock.

Presumably that's because once an investor has acquired 5% or more of the stock, the investor must notify the company, the market where the company is listed, and the Securities and Exchange Commission (SEC). That notification must explain the next steps the investor intends to take, such as a possible takeover bid.

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But then, when you read the books, you discover she's stood with just a toehold on a rock 200 feet up in the air and contemplated what she calls her next "crux move": pulling herself out from under an overhang to the next level of rock.
The company controlled by Mexican billionaire Carlos Slim could gain a stronger toehold in the Brazilian market with the planned purchase of a 51.
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After Pittsburgh-based Highmark Life & Casualty reviewed its technology as a part of assessing its toehold against the competition, it realized it had too many legacy systems splicing information together.
They also provide a platform for exports that could help copper get a toehold in world markets.
Unfortunately, Young's other attempts to gain a toehold in the U.
The narrow-opening, welded-mesh construction is designed to prevent a fingerhold or toehold and the use of cutting tools.
Drawing on research at leading universities, the Joyce Foundation reveals in the report that employment-based policies adopted by many states - especially in economic good times - have helped some families get a toehold on the economic ladder.
FIRST Minister Jack McConnell yesterday launched a campaign to stop far-right extremists getting a toehold in the Scottish Parliament.
In the UK it's very difficult to establish a toehold for all those worthy schemes to bring architecture to the teenies in our schools.
A Ministry of Defence spokesman said the city's capture would be "a crucial toehold to hit any new Taliban positions'.
Meanwhile, weeds are denied a friendly environment to take a toehold, deprived of the sunlight they need to prosper.