Lock-Up Option
A stock option offered by a target company to a white knight for additional equity or for the purchase of a valuable portion of their company. Investopedia Says:
An undesired third party is deterred from acquiring a major portion of the target company due to the very high value of the lockup option.
Also known as Lock-Up Defense. Related Terms:
Crown Jewels
Hostile Takeover
Lock-Up Agreement
Merger
Shark Repellent
White Knight |