Proxy Fight

(redirected from Proxy battle)
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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.

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.

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.
References in periodicals archive ?
The chance of Woodford winning the proxy battle ''is not zero,'' he added.
The proxy battle came at a cost--both monetarily and at the expense of Target's business.
Ultimately, he agreed to drop the proxy battle in exchange for a board seat for himself and two other people he handpicked.
For decades, the physical health and well-being of our country has been a proxy battle for partisan politics.
Meanwhile, the Fallins are drawn into a proxy battle that could destroy a family they have long represented.
There is no doubt - before and after the crimes perpetrated by Israel in Gaza - that Hamas is part of the Palestinian people, which Israel cannot uproot by force or by other means, even if it sees its battle against Hamas as a proxy battle against Iran.
Harbinger earlier this year fought a proxy battle to seat representatives on the Richmond-based parent company of the Tampa Tribune.
Icahn has opened the door for Microsoft to swoop in as white knight and buy Yahoo in a friendly deal without instigating the proxy battle it had threatened.
Investor Carl Icahn last week launched a proxy battle in order to pressure Yahoo
Microsoft's options include withdrawing its offer or taking it directly to shareholders in a hostile proxy battle.
Insurgents who target smaller public companies, in particular, may be able to gain an upper hand in a proxy battle.
She is the Democrat conservatives most love to hate, and McCain and Romney campaigned against her Sunday as if in a proxy battle against one another.