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Simple English definitions for legal terms
show-stopper
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A quick definition of show-stopper:
A show-stopper is a way for a company to stop another company from taking them over. It happens when the company being taken over asks a court to stop the takeover because it breaks the law. This is usually because the takeover would make the market unfair for other companies.
A more thorough explanation:
Definition: A show-stopper is a tactic used by corporations to prevent a takeover attempt by seeking an injunction to stop the offer. This is usually done because the proposed merger violates antitrust laws.
Imagine that Company A wants to take over Company B. However, Company B believes that the takeover would violate antitrust laws and harm competition in the market. To prevent the takeover, Company B could use a show-stopper tactic by seeking an injunction to stop the offer.
Another example could be if Company A wants to merge with Company B, but the merger would result in a monopoly in the market. Company B could use a show-stopper tactic to prevent the merger from happening.
These examples illustrate how a show-stopper tactic can be used to prevent a takeover or merger that would harm competition in the market. By seeking an injunction, the target company can stop the offer and protect its interests.