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Finance Dictionary and Glossary of Investment Terms
Often used in risk arbitrage. Hostile takeover attempt in which the acquirer offers an exceptionally large premium over the market value of the acquiree's share so as to as to squeeze (hug) the target into acceptance.
A situation in which one company makes an offer to buy the shares of another company that is too high for the board of the target firm to refuse.
A hostile takeover attempt predicated on making an offer at a premium large enough to ensure shareholder support even in the face of resistance from the target's board of directors. The directors are bound by an obligation to the shareholders.