squeeze-out
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A squeeze-out or squeezeout, sometimes synonymous with freeze-out, is the compulsory sale of the shares of minority shareholders of a joint-stock company for which they receive a fair cash compensation.
In the Vinony graph
Within Vinony's link graph, squeeze-out is referenced by 358 other articles, and connects out to takeover, Greenshoe and German.
It is catalogued under topics including Corporate law and Stock market.
Its subject is documented across 8 Wikipedia language editions.
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Encyclopedic overview
8 sectionsContents
- Process
- Criticism
- Overview by country
- Germany
- United Kingdom
- United States
- See also
- Notes
A squeeze-out or squeezeout, sometimes synonymous with freeze-out, is the compulsory sale of the shares of minority shareholders of a joint-stock company for which they receive a fair cash compensation.
This technique allows one or more shareholders who collectively hold a majority of shares in a corporation to gain ownership of remaining shares in that corporation. The majority shareholders incorporate a second corporation, which initiates a merger with the original corporation. The shareholders using this technique are then in a position to dictate the plan of merger. They force the minority stockholders in the original corporation to accept a cash payment for their shares, effectively "freezing them out" of the resulting company.
Excerpted from Wikipedia’s “squeeze-out” article, available under the CC BY-SA 4.0 licence.