The Law Dictionary

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BEAR HUG Definition & Legal Meaning

Law dictionary entry - legal definition of embargo

Definition & Citations:

A TAKEOVER bid received by a target company that DIRECTORS urge shareholders to accept due to its attractive price. Though directors might prefer to reject the bid, the price makes it nearly impossible for them to do so; failure to recommend approval could constitute a breach of DUTY OF LOYALTY and result in legal action being taken.

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