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 ?
Gompers, 2003, "The Role of Lockups in Initial Public Offerings," Review of Financial Studies 16, 1-29.
Facebook has already made it through several lockup expiration periods.
Additional lockups expire in mid-December and May 2013.
Facebook's shares have been marking record lows since the first share sale lockup for insiders expired in August amid concern that businesses are spending less to advertise on the world's largest social-networking website.
It's the first in a wave of lockup expirations in the coming months that will quadruple the number of shares that can be traded.
A lockup is different from a jail in a variety of ways.
Police lockups have become our psychiatric clinics.
Our findings confirm the information roles of lockups as a tool to signal firm quality and a commitment device to alleviate agency problems.
2% of our stock, they might then proceed with further lockups that would make their ability to block competing acquisition proposals a virtual certainty.
Some in the lockups don't see their mothers because they also may be behind bars.
So far, we have computed the costs of notice periods, lockups, and suspensions by assuming that investment in the hedge fund has already been made.
The inmates' main concern was Mira Loma's ban on smoking, since smoking is allowed at other Immigration and Naturalization Service lockups, officials said.