Meaning of take-under | Babel Free

Definitions

A proposed acquisition of a company at a price below its market price.

Examples

“PNC said the deal⟳ represented an offer⟳ of $2.23 for each share⟳ of National City, or nearly 19 percent below the stock’s closing price on Thursday. That makes the acquisition a “take-under,” meaning the purchase⟳ price is below the market value of the target⟳ company.”

“Yes SanDisk is being acquired at a 40% premium to its stock⟳ price at the beginning of October, but the deal⟳ amounts to a 20% take-under from beginning of year share⟳ prices.”

“And, immediately, they realized that Credit Suisse could not stand⟳ on its own⟳ two feet. And the government there in Europe, I think⟳ there was a lot of suasion to force⟳ what effectively is a shotgun take-under, a merger.”

CEFR level