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Finance allah shmoop what is a standstill agreement Yep we

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all signed it all of us ok but that works

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in a museum In the financial trenches a standstill agreement

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refers to a kind of lessening of hostilities pac man

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the one we all know and love bought seventeen percent

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of the shares outstanding of blinky pinky and inky inky

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and in most companies given that half or more of

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the shares never even vote in a proxy contest that

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seventeen percent is almost enough to control the company by

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electing its own slate or board of directors So instead

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of there being ah hostile takeover while the company usually

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agrees to meet with pac man here walk a walk

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up and negotiate a strategy or terms to better run

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the company than it had been in the past and

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note that hostile takeovers generally on ly happen when the

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target company this guy being eaten has been poorly run

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for a long time and has on ly dubious shareholder

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support like trying to do ah hostile with amazon or

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facebook or google or netflix these days even if they

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didn't have founder super voting stock while the stocks have

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done so well that there'd be no support for upsetting

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the apple cart in these winners because they won so

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much in stock appreciation for their investors And yes that

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applies to apple is well So are you not leaving

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you out there People Well once it's been agreed upon

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then generally speaking there would be a standstill agreement put

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in place that is packman here would stand still from

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his hostilities You know like we do just stand here

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still and stop buying more shares beyond his seventeen percent

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that's What that stands still agreement would do it stopped

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by a standstill on his seventeen and hopefully the company 00:01:46.246 --> [endTime] Well no get back on course

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