Stockmarket Terms: Bear Hug
A “Bear Hug” is?
- An offer to acquire a company at a very high premium
- So attractive to the board would struggle to justify rejecting it
In simple terms:
- Market price: $10
- Offer: $15 or $18
The board is effectively “cornered” into accepting
What’s happening?
The acquirer goes directly to:
- Shareholders
- Public markets
Applying pressure on the board: “Say no and explain why you’re rejecting the value.”
Stockmarket Terms
Here is a collection of stock market terms, some you may already be familiar with, and others you may not have encountered before. Discover what they mean, explore their origins, and understand how they apply to what is happening in the market today.
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