crown jewel

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Related to crown jewel: golden parachute

Crown jewel

A particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. Often used in risk arbitrage. The most desirable entities within a diversified corporation as measured by asset value, earning power, and business prospects; in takeover attempts, these entities typically are the main objective of the acquirer and may be sold by a takeover target to make the rest of the company less attractive. See: Scorched earth policy.

Crown Jewel

1. A particularly valuable or important asset that a company owns. For example, a car manufacturer's three best producing factories may be considered its crown jewels.

2. Describing an antitakeover measure in which a company sells many or all of its crown jewel assets. A crown jewel policy is designed to make the company less attractive to potential acquirers. The obvious disadvantage to a crown jewel policy is the possibility that, even if the company remains independent, the lack of its crown jewels may render it unable to maintain its operations easily. It is a type of scorched earth policy. See also: Poison pill, Suicide pill.

crown jewel

1. A prized asset of a company.
2. Used to refer to a part of a business that is sought by another firm or an investor in a takeover attempt that is hostile to the target firm's management. Compare scorched earth.
References in periodicals archive ?
Many of the Philippines' crown jewels in Metro Manila have been sold to business groups which proceeded to retail them for commercial and residential purposes.
As the director of the WDOEc stated with respect to Crown Jewel, "No other proposal has received this level of environmental scrutiny.
The Posturepedic Crown Jewel is touted as having fashionable, fine furniture styling, which makes it a natural for a print ad campaign.
Since mining is an affront to the interior secretary, Crown Jewel is in jeopardy, maybe.
However, the agencies also noted that "we emphasize that there are ways for BMG to still proceed with developing the Crown Jewel mine consistent with the mill site limitation.
4 million s/f crown jewel of Vornado's considerable holdings in the Penn District.