war chest

War Chest

Slang for the reserve of cash a corporation sets aside to attempt a takeover or to defend against a hostile takeover.

Notes:

For example, you might hear, "Look for XYZ Company to make an acquisition soon they've been selling off assets in order to build up their war chest."

See also: Acquisition, Takeover, War Babies

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War chest

Cash kept aside for a takeover or for defense against a takeover bid.

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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.