Takeunder

Takeunder

An offer for the takeover of a publicly traded company in which the offer price is significantly lower than the market value. These offers are made (and accepted) when a company's stock is under downward pressure. The offering company makes the offer to purchase a company cheaply, and shareholders accept the offer because they believe that the price, while below the market value, will soon be more than the company is worth if the trend continues.
References in periodicals archive ?
Among the notable losers was 8point3 Energy (CAFD), which fell 11.5% after it agreed to be acquired in a "takeunder" by Capital Dynamics for $977M in equity value.
The Validus deal is considered a "takeunder," valuing IPC at less than book value (albeit at a small premium to market value).
* Liquidity crisis washes over Bermuda with Validus "takeunder."