Busted Takeover
A highly leveraged takeover that, to go through, requires a selling off of some of the acquired company's assets. Investopedia Says:
For example, let's say the Cory's Tequila Company (CTC) wants to acquire the TSJ Sports Conglomerate (let's assume CTC is looking to diversify). However, CTC must leverage itself highly to finance the deal. As such, as a term of the deal, CTC must agree to sell off TSJ's two ice hockey teams and give the proceeds to the financier, paying back part of the amount that was lent. Related Terms:
Acquisition
Deleverage
Leverage
Leveraged Buyout
Operating Leverage
Revlon Rule
Takeover
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