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An agreement in which a hostile bidder agrees to limit its holdings in a target company. A standstill agreement stops the takeover bid from progressing for a period of time. Standstill Agreement | Practical Law - Thomson Reuters thomsonreuters.com ? ... thomsonreuters.com ? ...
A standstill agreement is a contract that contains provisions that govern how a bidder of a company can purchase, dispose of, or vote stock of the target company. A standstill agreement can effectively stall or stop the process of a hostile takeover if the parties cannot negotiate a friendly deal.
A standstill agreement is a form of anti-takeover measure. In the banking world, a standstill agreement between a lender and borrower halts the contractual repayment schedule for a distressed borrower and forces certain actions that the borrower must undertake. Standstill Agreement: Definition, How Contract Works, and ... Investopedia ? ... ? M&A Investopedia ? ... ? M&A
Standstill agreements to extend or suspend a limitation period have become a regular feature of civil litigation. They enable the parties to focus on the pre-action protocol requirements without worrying about limitation. They can also save the cost of the court issue fee if the dispute settles pre-action.
A standstill agreement prevents a party from issuing proceedings during the currency of that agreement. As such a standstill agreement is a voluntary contractual arrangement between the parties to pause limitation for an agreed length of time (typically 3-6 months).