Dictionary

take-under en · NOUN

Etymology

Modelled on takeover.

Meanings

1. A proposed acquisition of a company at a price below its market price.
   • PNC said the deal represented an offer of $2.23 for each share of National City, or nearly 19 percent below the stock’s closing price on Thursday. That makes the acquisition a “take-under,” meaning the purchase price is below the market value of the target company. 2008 October 24, Eric Dash, “PNC Gets National City in Latest Bank Acquisition”, in New York Times:
   • Yes SanDisk is being acquired at a 40% premium to its stock price at the beginning of October, but the deal amounts to a 20% take-under from beginning of year share prices. 2015 October 21, Antoine Gara, “Why KLA-Tencor's Sale Should Change Silicon Valley Forever”, in Forbes:
   • And, immediately, they realized that Credit Suisse could not stand on its own two feet. And the government there in Europe, I think there was a lot of suasion to force what effectively is a shotgun take-under, a merger. 2023 March 20, Roben Farzad, “Can banking takeovers and rescues stabilize the markets?”, in PBSNewsHour (transcript of interview):

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