Sweeping the Market: The Use and Control of A Bold Acquisition Technique

Friday, January 1st, 1988 at 12:00 am by Marina Jaudenes
Marina Jaudenes, Sweeping the Market: The Use and Control of A Bold Acquisition Technique, 1988 Colum. Bus. L. Rev. 607

The current prevalence of hostile takeovers has engendered a variety of offensive and defensive tactics. One of the most controversial of these is the so-called “market sweep”‘ or “street sweep.” Using such a tactic, a bidder or other party may gain control of a target company through rapid open market or privately negotiated purchases of the target’s shares. In addition, the target of a hostile bid may use the tactic to purchase its own shares and so preempt a bidder or other party acquisition of a controlling number of shares.

Author Information