defensive acquisition

Defensive Acquisition

An acquisition that a company makes in order to keep from being taken over. For example, if Company A may acquire a much smaller Company B, which will make Company A so large that any takeover will result in the acquirer running afoul of antitrust laws. A defensive acquisition most commonly applies to acquiring a company, but it may also involve acquiring a particular product that will make the company more difficult to take over. It is an example of an antitakeover measure.

defensive acquisition

A firm or an asset purchased by a potential target of a takeover in order to make itself less desirable to raiders. For example, a target company might purchase another firm engaged in the same business as the raider in order to create an antitrust problem for the raider. See also raider, target company.

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 ?

This was a defensive acquisition, Fish tells investors in a research note.

F5 acquisition of NGINX a defensive one, says Piper Jaffray

Lindelof's own recovery should reassure United's next central defensive acquisition.

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There are also well-established defensive acquisition networks to leverage collective resources to head off trolls.

Reducing exposure to patent trolls

"Chancel Mbemba looks a fine defensive acquisition and Georginio Wijnaldum and Florian Thauvin extremely promising creators but questions remain about Aleksandar Mitrovic's temperament, if not his goal-scoring aptitude."

Newcastle United transfers: What the media thought of the Magpies' summer business; Newcastle United's transfer window reviewed by the Mirror, the Guardian, ESPN, Squawka, TalkSport and Sky Sports' Paul Merson

Over the past few years, defensive acquisition has been successful enough to demonstrate that patents aren't intrinsically "special." They are assets like any other, with particular valuation metrics and attributes that can be defined and quantified.

Is Rockstar patent peace paving the way for a clearinghouse?

Douglas, who has never been capped at senior level by Brazil, becomes Barca's fifth high-profile defensive acquisition of the summer, with Claudio Bravo, Marc-Andre ter Stegen, Thomas Vermaelen and Jeremy Mathieu already having arrived at Camp Nou.

Barcelona Confirm Douglas Deal

Southampton new boys, Shane Long, Graziano Pelle and academy graduate Lloyd Isgrove are available, as is midfielder Morgan Schneiderlin, but new defensive acquisition Florin Gardos (hamstring) is out.

NO NATTY DREAD FOR BOLD SAINT; EXCLUSIVE

Kolo Toure remains the club's only defensive acquisition of the summer, signed on a free transfer from Manchester City.

Liverpool Boss Expects Defender to Shun Barcelona Interest

The White House said new action is needed in the face of a flood of recent patent litigation, particularly in the smartphone sector, and because "several major companies spend more on patent litigation and defensive acquisition than on research and development."

US panel backs Samsung, bans older Apple devices

We stand ready to work with Congress on these issues crucial to our economy, American jobs, and innovation." The White House said new action is needed in the face of a flood of recent patent litigation, particularly in the smartphone sector, and because "several major companies spend more on patent litigation and defensive acquisition than on research and development." One of the signed orders calls for patent holders to have by default a "real party-in-interest" in a patent.

White House moves to curb 'patent trolls'

Kroldrup's time at Everton coincided with a severe dip in form that saw Moyes' side drop to the foot of the Premier League table after a shocking start to the campaign, and the centre-back believes the team's fortunes had left the manager "afraid" to play his defensive acquisition.

Football: But face a tough test overcoming Italian job; BLUES MAKE A EURO NAME MOYES' MEN TO KEEP CUP DREAM ALIVE FIORENTINA v EVERTON