Standstill (M&A Glossary)

Summary

An agreement between the target and a hostile buyer to limit the buyer’s shareholding in the target to a certain percentage in exchange for the target’s promise to acquire the hostile buyer’s shares at a slight premium to their current value. One of the milder takeover defenses, the standstill enables the target to put a stop to the hostile buyer’s pursuit of the target and gives it more time to consider more significant protective actions.