A company issues bonds with the clause that, in the event of a takeover of the issuer, they must be redeemed at a very high price. The name refers to pasta tubes, which increase in size several times over when boiled in water (a tactic that a company may employ to prevent a takeover by issuing bonds which must be redeemed at an excessively high price if the company is taken over. The name alludes to the price of the bonds expanding like macaroni being cooked in water, thus making the deal hard to swallow). – See shareholder vote chase, share swap takeover, bidder, blitzkrieg takeover bid, buy out, decapitalization, acquisition bid, suitor, mergers and acquisitions, greenmail, poison pill, hand money, war chest, material reverse change clause, pac man strategy, mandatory bid, raider, knight, white, shark watcher, spin-off, squeeze-out, takeover announcement, takeover appeal.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/