Proxy Fight

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Related to Proxy Fight: preemptive right, poison pill, tender offer

Proxy fight

Often used in risk arbitrage. Technique used by an acquiring company to attempt to gain control of a takeover target. The acquirer tries to persuade the shareholders of the target company that the present management of the firm should be ousted n favor of a slate of directors favorable to the acquirer, thus enabling the acquiring company to gain control of the company without paying a premium price.

Proxy Fight

Competition of outside group with management for stockholders' proxies in order to accumulate votes to elect a new board of directors.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Proxy Fight

A situation in which two investors (usually two companies) compete with one another in the attempt to gain the proxy votes of shareholders in a third company. The two investors engage in the proxy fight because both wish to have enough proxy to elect a new board of directors that will effectively do whatever the investor wants. The winner of a proxy fight, if any, is able to control the third company through the board of directors and does not need to directly acquire it, though many often do anyway.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

proxy fight

A contest among two or more opposing forces to solicit stockholders' proxies and, in effect, to gain control of the firm through the election of directors. It is usually quite difficult to wrest control from the existing management through a proxy fight, but the tactic has been used, for example, by some suitors in takeover attempts.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Trellep, Lockheed chairman, after last year's proxy fight cost his company approximately $20 million, $3 million of which was for ad space.
What's becoming clear is Acxiom's new desire to rebound from last year's proxy fight and move forward by polishing its image.
We told you just a few weeks ago about Acxiom Corp.'s plans to shake up its marketing efforts to present a friendlier and more polished company on the heels of its recent proxy fight.
Dickey reaffirmed Gannett's previous position that the $12 a share offer by MNG, which has launched a proxy fight against the company through director nominations, is "not credible," adding"While our industry is undoubtedly facing challenges, we at Gannett are committed to remaining a trusted source of local news and information across our communities.
Ichigo claimed that it became the first ever investment fund to win a proxy fight at a general meeting of shareholders in Japan.
Such development would allow Dell to begin a proxy fight to regain control of his company, the source added.
Girding for a proxy fight with the Sulzberger family majority owners, dissident shareholder Harbinger Capital Partners increased its stake in The New York Times Co.
Activist funds -Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC - which control about a 5% stake in Bed Bath & Beyond, are preparing to begin a proxy fight to replace the entire board of the company, The Wall Street Journal's Cara Lombardo reports, citing people familiar with the matter.
Readers may recall that the racing sponsorship has long been a source of controversy for the Little Rock database company, most recently giving fodder to ValueAct Capital Partners' criticism of Company Leader Charles Morgan during the proxy fight that ended in August.
"When the raiders were well financed, all they had to do was launch a proxy fight against your board and, if you had 100 percent of your board members up for election each year, they could convince the arbitrageur, who then owned most of the stock, that they ought to elect a new board consisting of the LBO firms or takeover individuals and their friends and families.
Nippon Steel raps investment fund over Tokyo Kohtetsu proxy fight
The group has been preparing for a proxy fight to nominate a slate of four directors for a vote at the April 22 annual meeting.