business combination laws meaning

  "business combination laws" in a sentence
[Finance]
These laws impose a moratorium on certain kinds of transactions (e.g., asset sales, mergers) between a large shareholder and the firm for a period usually ranging between three and five years after the shareholder's stake passes a pre-specified (minority) threshold. These laws are in place in more than half the U.S. states.

Examples

  1. "The bill makes changes in the state's business combination laws in order to curb abusive takeover tactics aimed at Echlin and other Connecticut publicly traded corporations ."
  2. A new Harnischfeger-controlled board also would formally authorize the acquisition to satisfy Wisconsin's " business combination law, " which prohibits anyone with more than 10 percent of a company's stock from purchasing for three years the remaining assets without board approval.
  3. The new board also would formally authorize the acquisition, Lundgren said, to satisfy Wisconsin's " business combination law " prohibiting anyone with more than 10 percent of a company's stock from purchasing for three years the remaining assets for the purpose of merging without board approval.

Related Words

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