In a bankmail engagement, the bank of a target firm refuses financing options to firms with takeover

Takeover

In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...

 bids. This takeover tool serves multiple purposes, which include 1) thwarting merger acquisition through financial restrictions, 2) increasing the transaction cost

Transaction cost

In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange . For example, most people, when buying or selling a stock, must pay a commission to their broker; that commission is a transaction cost of doing the stock deal...

s of the competitor’s firm to find other financial options, and 3) to permit more time for the target firm to develop other strategies or resources.

See also

• Economics
  Economics
  Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
  
  
• Mergers and acquisitions
  Mergers and acquisitions
  Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
  
  
• Microeconomics
  Microeconomics
  Microeconomics is a branch of economics that studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. Typically, it applies to markets where goods or services are being bought and sold...
  
  
• Takeover
  Takeover
  In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
  
  
• Industrial organization
  Industrial organization
  Industrial organization is the field of economics that builds on the theory of the firm in examining the structure of, and boundaries between, firms and markets....