Cash underwritten alternative

Also known as cash underpinning. An arrangement entered into by the bidder in an offer where the consideration (www.practicallaw.com/A34740) consists of bidder shares, under which target shareholders may elect to receive cash instead of shares, the cash being provided by the bidder’s financial adviser which makes a separate offer to acquire those bidder consideration shares.

For further information, see Practice note, Consideration and underwriting: takeovers (www.practicallaw.com/4-107-3611).

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