Parking Violation
The illegal practice of an acquiring company concealing ownership of the target company by holding stock under a related third party before attempting corporate takeover. Investopedia Says:
Unlike the parking violations that many of us as drivers commit inadvertently, this type of violation is deliberately hostile. By having a third party hold significant portions of stock, the acquiring company can prepare for a takeover without exceeding certain ownership reporting levels and alerting the target company. Related Terms:
Hostile Takeover
Parking
Takeover
Target Firm |