Lockup


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Lockup

A place of detention in a police station, court or other facility used for persons awaiting trial. In corporate law, a slang term that refers to the setting aside of Securities for purchase by friendly interests in order to defeat or make more difficult a takeover attempt. A lockup option is a takeover defensive measure permitting a friendly suitor to purchase divisions of a corporation for a set price when any person or group acquires a certain percentage of the corporation's shares. To be legal, such agreement must advance or stimulate the bidding process, to best serve the interests of the shareholders through encouraged competition.

See: penitentiary
References in periodicals archive ?
Greg Abbott, a Republican, called for the Texas Rangers to investigate alleged misconduct at state-run youth lockups after reports of sexual and physical abuse at the Gainesville facility.
the rightholder would profit more from the lockup in the event of an
According to Business Insider, Pincus argued that the suit should be waived because he and the Zynga board agreed only to sell 20 percent of their stock holdings, putting the remainder on a lockup agreement that lasted into the summer of 2012.
However, firms need to keep tight control of costs and lockup to ensure that fee income coverts into profits and cash flow remains healthy.
8220;I am excited to participate in the 2013 New Bern Lockup for the MDA,” said Van Horn.
Teamwork efficiency and productivity can be greatly improved by sharing more accurate designs with Drawing Lockup.
When corporate insiders of IPO firms sell shares shortly following lockup expiration, they generally state that they are doing so in order to diversify their portfolios or meet their liquidity needs (Maremont, Ewing, and Egodigwe, 2000; Bryan-Low, 2001).
The top six M5 stockholders, representing approximately 66 percent of the shares issued in conjunction with the acquisition of M5 Networks (now ShoreTel's cloud division, which offers the ShoreTel Sky solutions), have voluntarily displayed a vote of confidence in ShoreTel's strategic direction after the initial lockup restriction period of six months expired this week.
Director Peter Thiel, an early investor in Facebook, sold more than $1 billion worth of Facebook shares in the IPO and after the end of the first lockup, a move that analysts and other venture capitalists described as 'unprecedented.
Even the investors that I talk to who want to buy the stock and like the company are not sure if they can stomach the lockups.
Hawke said that with Gardner building a police station, it would be reasonably easy to increase the size of the lockup depending on the number of communities that might be using it.
A lockup is different from a jail in a variety of ways.