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 ?
The juvenile justice department made headlines in the last year after a November agency memo highlighted the recent conviction and 10-year prison sentence of one guard and the arrests of three others at another state lockup for allegedly having sex with committed youth.
target shareholders, who can be hurt if the lockup is
"Meanwhile, it's notable that the funds in the study were unanimous in employing either a lockup or an investor-level gate.
This move, the court filings allege, allowed Pincus to sell $192 million worth of stock in April 2012, during the company's second offering and at a price roughly double what it was when the lockup agreements ended.
In contrast, for the 5-10 partner and 25 partner practices, lockup worsened by 5% and 8% respectively.
The MDA's Lockup program is a national fundraiser that occurs at various times throughout the year to help fund lifesaving research, a nationwide network of medical clinics and accessible summer camps for those affected by neuromuscular diseases.
The Service Division lockup has roughly 54 officers and officials and runs around the clock.
The lockup period specified may range from several days to a couple of years, with a mode of 180 days.
Facebook has already made it through several lockup expiration periods.
Unified communications platforms provider ShoreTel (NASDAQ: SHOR) said that six of the largest former M5 stockholders, including Dan Hoffman, president and general manager of ShoreTel Cloud Division, have notified ShoreTel that despite the recent release of the lockup of a portion of their shares, they currently do not intend to sell their stock for at least an additional six months.
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.