war chest

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War chest

Cash kept aside for a takeover or for defense against a takeover bid.

War Chest

Informal; money a corporation sets aside to pay for or defend against a hostile takeover. A war chest is highly liquid, and while it can cut into short-term profits, it may open up investment opportunities for the long-term. The term is commonly used in journalism.

war chest

Liquid assets accumulated by a firm to use in a potential acquisition or in defending itself against a takeover attempt. A substantial war chest adds security and enhances investment opportunities but is likely to be a drain on short-term profitability.
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5) Below we argue that war chests can deter entry through the interplay of first-mover advantages and other asymmetries that affect challengers' anticipated costs of mounting a campaign.
As such, funds held in their war chests will have a market-determined opportunity cost.
War chests, therefore, could have the effect of informing potential candidates about nonobservable attributes committing an incumbent to an all-out campaign.
Given the continuing pressure for electoral reform, some cautionary remarks concerning war chests are appropriate.