Board becomes less effective and independent week

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Unformatted text preview: ssued. Avoids dilution effect. Golden Handshakes: Benefits/Payments when leaving company. Conditional on good work. Golden Parachute: Given when there is change in control. Paradox of Board Selection: Managers control their own compensation, positions etc. Board becomes less effective and independent. Week 9: Takeover Threat • • • • • • Toe Hold: Gather large shareholding without being noticed. Casual Pass: Informally, maybe through third party, getting to know the company. Might issue offer. Bear Hug: Friendly offer to takeover the company. Can be accompanied by warning of hostility. Tender Offer: Offer to shareholders to buy shares. Street Sweep: Go around to shareholders to buy...
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This document was uploaded on 02/27/2014 for the course FINS 1613 at University of New South Wales.

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