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| ''Rights issues''.
| | == Summary == |
| 1.
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| A trombone is a feature of a rights issue, commonly seen in contested takeover bids, where the acquirer is financing the acquisition by issuing more its own shares for cash.
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| The trombone provides for the total size of the rights issue to be increased, usually on the condition that an acquisition goes ahead as planned.
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| (The full amount of the rights issue not being justifiable to raise if the acquisition does not proceed.)
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| The term derives from the slide on a trombone, used to vary the volume of air in - and hence the pitch of - the instrument.
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| 2.
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| A similar feature in an issue of convertible loan stock.
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| 3.
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| Similar features in issues made to raise funds for research and development, where the need for the expenditure may be contingent on - for example - receiving clinical approvals for a new drug.
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| == See also == | |
| * [[Accordion feature]]
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| * [[Rights issue]]
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Latest revision as of 09:29, 27 July 2023
Summary
Importing files from local file repository
