Proxy Fight

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Related to Proxy battle: Proxy contest

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 ?
Fitch does not view the settlement as a surprise given an increased propensity for settlements in lieu of drawn-out proxy battles and that United was in a vulnerable position due to its CEO's recent health condition and management turnover during the past year.
Many see the Apple/Sam-sung war as a proxy battle between Google and Apple, whose founder Steve Jobs once threatened "thermonuclear war" on Google.
The board also praised Steinhafel for leading the company through such challenges as "navigating the financial recession, reacting to challenges with Target's expansion into Canada, and successfully defending the company through a high-profile proxy battle.
CHIEF minister Naveen Patnaik is engaged in a proxy battle with former Union minister and BJP candidate Dilip Ray in all- important Rourkela Assembly constituency, which has become a prestige issue for the ruling Biju Janata Dal ( BJD).
Sotheby's said in an announcement last week that it has engaged in extensive discussions with Third Point over the past months in an effort to reach a resolution that would avoid a proxy battle. As part of these discussions, it offered to appoint Daniel Loeb to the board, where he would also serve on three committees.
The two key US allies, battling renewed tensions dating from imperial Japan, fought a proxy battle over the textbook change, with their respective ambassadors visiting the Southern state's capital Richmond repeatedly.
The relatively small elections (turnout was 21 percent in Colorado Springs and 36 percent in Pueblo) attracted big money from those who saw it as a proxy battle between the nation's gun-fights and gun-safety forces.
The new law does--at the request of the Secretary of State's office--give dissenters more of an opportunity to get lists of fellow shareholders so they would be able to contact them, a key point in many a proxy battle. Currently, challengers must ask a corporation for the list of shareholders or challenge them for that list in Superior Court.
Al-Maliki said that the conflict in Syria has become a proxy battle between regional and international forces, stressing that the armed opposition is unable to topple the government, but if interference continues and political solutions aren't thought, then bombings and violence will continue.
But it will likely still have to confront former President and Chief Executive Officer Michael Woodford, who said he would fight a proxy battle to retake control of the firm when he resigned from the company's board on Dec.
Reacts to Fear of Iran's Rising Clout [WSJ] Clinton Warns Iran About Persian Gulf Meddling [AP/WP] The Proxy Battle in Bahrain [NYT] Related: The Arab Powder Keg [Slate]
The power struggle became a proxy battle in the Cold War, with the Soviet Union and Cuban army backing the MPLA and the United States and apartheid South Africa backing Unita.