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Simple English definitions for legal terms
Raider
Read a random definition: restrictive covenant in equity
A quick definition of Raider:
A raider is someone who tries to take control of a company by buying enough shares to have the most power. They usually target companies that have valuable things, like property or money. Once they have control, they might sell off parts of the company to make money.
A more thorough explanation:
Definition: A raider is a person or company that tries to take over another company by buying enough shares to gain control. Raiders usually target companies that have valuable assets and then sell those assets for a profit.
Examples:
- Carl Icahn is a well-known raider who has attempted hostile takeovers of companies like TWA and Texaco.
- In the 1980s, the corporate raider Ivan Boesky made a fortune by buying up shares of companies like Gulf Oil and then selling them for a profit.
These examples illustrate how raiders use their financial resources to gain control of companies and then break them up to make a profit. They often target companies that are undervalued or have valuable assets that can be sold off for a profit.