Legal Definitions - show-stopper

Definition: A show-stopper is a tactic used by corporations to prevent a takeover attempt by seeking an injunction to stop the offer. This is usually done because the proposed merger violates antitrust laws.

Imagine that Company A wants to take over Company B. However, Company B believes that the takeover would violate antitrust laws and harm competition in the market. To prevent the takeover, Company B could use a show-stopper tactic by seeking an injunction to stop the offer.

Another example could be if Company A wants to merge with Company B, but the merger would result in a monopoly in the market. Company B could use a show-stopper tactic to prevent the merger from happening.

These examples illustrate how a show-stopper tactic can be used to prevent a takeover or merger that would harm competition in the market. By seeking an injunction, the target company can stop the offer and protect its interests.