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lock-up option

 - 2 dictionary results
lock-up option

noun
an option to buy the crown jewels offered to a white knight in order to forestall a hostile takeover 
WordNet® 3.0, © 2006 by Princeton University.
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Financial Dictionary

Lock-Up Option

A stock option offered by a target company to a white knight for additional equity or for the purchase of a valuable portion of their company.

Investopedia Commentary

An undesired third party is deterred from acquiring a major portion of the target company due to the very high value of the lockup option.

Also known as Lock-Up Defense.

See also: Crown Jewels, Hostile Takeover, Lock-Up Agreement, Merger, Shark Repellent, White Knight

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