Firm B has the option to purchase the key assets of Firm A at a predetermined fixed price should Firm A become the target in an unfriendly takeover attempt.Which term applies to the option given to Firm B?
A)Countertender offer
B)Fair price provision
C)Dual class capitalization
D)Bear hug
E)Lockup

Question

Quizplus · Accepted Answer

A lockup is an option given to a friendly party to purchase key assets or shares at a predetermined price to deter hostile takeovers.

Firm B Has the Option to Purchase the Key Assets