Luminax Electric,in its bid to take over Greenwave Electric,buys a block of stock from Greenwave before making a tender offer.After a month,Luminax decides to give up its tender offer and agrees not to purchase any further shares if Greenwave agrees to buy back the stock at a premium over fair market value.Luminax's agreement is an example of a(n)________ agreement.

Question

Quizplus · Accepted Answer

Luminax's agreement to not purchase further shares and an agreement for Greenwave to buy back the previously purchased shares at a premium is an example of a standstill agreement.

Luminax Electric,in Its Bid to Take Over Greenwave Electric,buys a Block