Asset stripper

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Asset stripper

A corporate raider (company A) that takes over a target company (company B) in order to sell large assets of company B to repay debt. Company A calculates that the net, selling off the assets and paying off the debt, will leave the raider with assets that are worth more than what it paid for company B.

Asset Stripping

A form of corporate raiding in which a company acquires a target company and then sells some of its assets, usually to repay its (the corporate raider's) debt. Often this debt is the debt incurred in the process of taking over the target company. The corporate raider conducts asset stripping because he believes that selling some of the assets will both repay the debt and leave the raider with enough extra assets to increase its net worth. In the process of deciding which companies to acquire, asset strippers look for companies worth more as individual assets than as companies.

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Based on a report published on the Tribune's web site that Zell is "favored" to take over the company, Martin told directors in a Sunday letter that handing Zell control "would be the death knell of American journalism," Monday's news conference will expand on Martin's strategy to block any sale of the Tribune organization to asset strippers.

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But Brian Revell, of the union Unite, accused them of acting like a "private equity asset stripper.

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National officer Brian Revell said the firm was acting like a "private equity asset stripper.

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Everything has been sold by the asset stripper except the ground but, mark my words, Tynecastle will be next.

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Mr Moulton wrote a stroppy letter to one newspaper after it had accused him of being an asset stripper.

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They took all the best bits, asset stripped it and then sold it to another asset stripper.

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Asked if he was just an asset stripper, keen to sell off the land and machinery at Longbridge, Mr Moulton replied: 'The benefit of any sale of land will be a long time coming and it may even fall to the next owner of Longbridge.

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