Chastity bonds

Chastity bonds

Bonds redeemable at par value in the case of a takeover.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Chastity Bond

A corporate bond that matures automatically in the event the issuer is acquired by another company. Some companies issue chastity bonds as an antitakeover measure; this gives potential acquiring companies have an incentive not to attempt a hostile takeover if it will immediately have to repay bonds.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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