A contract that limits the holdings of a bidder to a minority stake in the target firm is called a:
A) Supermajority amendment.
B) Standstill agreement.
C) Greenmail provision.
D) Poison pill amendment.
E) White knight provision.

Question

Quizplus · Accepted Answer

A standstill agreement is a contract that limits the holdings of a bidder to a minority stake in the target firm, often used to prevent hostile takeovers by ensuring that the bidder cannot acquire a controlling interest without the consent of the target company's board.

A Contract That Limits the Holdings of a Bidder to a Minority