Standstill Agreement
A contractual undertaking by a potential bidder to refrain from making unsolicited bids, acquiring shares above a threshold, or launching a proxy fight against the target for a specified period (typically 12-24 months). Standstills protect the standing of negotiation between the target and a friendly bidder; they can typically be waived by the target board if a superior unsolicited proposal arises. Activist investors are commonly required to sign standstills as a condition of getting management dialog or board representation.
Lessons that use this term
Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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