defensive acquisition

Defensive Acquisition

An acquisition that a company makes in order to keep from being taken over. For example, if Company A may acquire a much smaller Company B, which will make Company A so large that any takeover will result in the acquirer running afoul of antitrust laws. A defensive acquisition most commonly applies to acquiring a company, but it may also involve acquiring a particular product that will make the company more difficult to take over. It is an example of an antitakeover measure.

defensive acquisition

A firm or an asset purchased by a potential target of a takeover in order to make itself less desirable to raiders. For example, a target company might purchase another firm engaged in the same business as the raider in order to create an antitrust problem for the raider. See also raider, target company.
References in periodicals archive ?
This was a defensive acquisition, Fish tells investors in a research note.
Lindelof's own recovery should reassure United's next central defensive acquisition.
In its February 16, 2018 report, Institutional Shareholder Services ("ISS") state: "Through negotiations, Qualcomm might be able to obtain a more realistic understanding of what Tan and Broadcom think NXP is worth (the deal will doubtfully get done at $110, since NXP continues to trade around $117) a calculation that is equally critical to the Qualcomm board, which does not want to be perceived by shareholders as overpaying for NXP, making it seem like an imprudent defensive acquisition."
There are also well-established defensive acquisition networks to leverage collective resources to head off trolls.
"Chancel Mbemba looks a fine defensive acquisition and Georginio Wijnaldum and Florian Thauvin extremely promising creators but questions remain about Aleksandar Mitrovic's temperament, if not his goal-scoring aptitude."
Over the past few years, defensive acquisition has been successful enough to demonstrate that patents aren't intrinsically "special." They are assets like any other, with particular valuation metrics and attributes that can be defined and quantified.
Douglas, who has never been capped at senior level by Brazil, becomes Barca's fifth high-profile defensive acquisition of the summer, with Claudio Bravo, Marc-Andre ter Stegen, Thomas Vermaelen and Jeremy Mathieu already having arrived at Camp Nou.
Southampton new boys, Shane Long, Graziano Pelle and academy graduate Lloyd Isgrove are available, as is midfielder Morgan Schneiderlin, but new defensive acquisition Florin Gardos (hamstring) is out.
Kolo Toure remains the club's only defensive acquisition of the summer, signed on a free transfer from Manchester City.
The White House said new action is needed in the face of a flood of recent patent litigation, particularly in the smartphone sector, and because "several major companies spend more on patent litigation and defensive acquisition than on research and development."
We stand ready to work with Congress on these issues crucial to our economy, American jobs, and innovation." The White House said new action is needed in the face of a flood of recent patent litigation, particularly in the smartphone sector, and because "several major companies spend more on patent litigation and defensive acquisition than on research and development." One of the signed orders calls for patent holders to have by default a "real party-in-interest" in a patent.
Kroldrup's time at Everton coincided with a severe dip in form that saw Moyes' side drop to the foot of the Premier League table after a shocking start to the campaign, and the centre-back believes the team's fortunes had left the manager "afraid" to play his defensive acquisition.