In this video on Crown Jewel Defense, here we discuss how crown jewel defense works along with the example.
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐫𝐨𝐰𝐧 𝐉𝐞𝐰𝐞𝐥𝐬 𝐃𝐞𝐟𝐞𝐧𝐬𝐞?
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Crown Jewels Defense as a takeover defense strategy in which the target company offers to sell or sell its most valuable assets to a third party to become a less attractive acquisition target.
𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐂𝐫𝐨𝐰𝐧 𝐉𝐞𝐰𝐞𝐥𝐬?
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A corporation's most important units are classified as Crown Jewels based on factors such as profitability asset value, and prospects.
𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐨𝐟 𝐂𝐫𝐨𝐰𝐧 𝐉𝐞𝐰𝐞𝐥?
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Company A is making offers to acquire Company B. Company B does not approve the bid and rejects it.
Company A pursues the sale and gives a 15% premium to Company B to acquire its shares.
Company B reaches out to a friendly third-party company in this situation to purchase valuable assets from Firm A. The two companies- Company A and Company B sign an agreement that when the hostile bidder- Company A withdraws its bid, Company B will buy back its assets at a slight premium.
Since Company B most valuable assets are sold off, Company A withdraws its bid as Company B becomes less attractive to buy.
Since the hostile bidder- Company A is out of the picture and has retracted its bid Company B at the fixed slightly premium price buys back its assets from Company B.
To know more about the 𝐂𝐫𝐨𝐰𝐧 𝐉𝐞𝐰𝐞𝐥𝐬 𝐃𝐞𝐟𝐞𝐧𝐬𝐞, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- [ Ссылка ]
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