Bear Hug

A buyout offer by the acquirer to the target so favorable that the shareholders of the target are highly unlikely to refuse. The Bear Hug not only offers a price significantly higher than the current market price, but the offer is likely to consist of cash payments as well.

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About the Author

Will Dearman is the Editor of TheStrategyBlog. His professional experience includes acquiring and later selling a portfolio of Internet-based companies as well as working as a credit underwriter in Bank of America's commercial middle market bank. His interests include finance, innovation, strategy and social technology. Find him on Twitter!