proxy contest

Definition

A strategy that may accompany a hostile takeover. A proxy contest occurs when the acquiring company attempts to convince shareholders to use their proxy votes to install new management that is open to the takeover. The technique allows the acquired to avoid paying a premium for the target. also called proxy fight.

Use proxy contest in a sentence

You may want to try and make sure you choose the right side any time you will be entering in to a proxy contest.

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There was a proxy contest as the takeover was theoretically imminent but there were other tactics capable of being employed.

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Activist investors are in the process of waging a proxy contest seeking to replace the existing Board of Directors with individuals of their own choosing.

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