LOBSTER TRAP

Today's word: LOBSTER TRAP 
Theme for this fortnight: MERGERS & ACQUISITIONS

 

             The trap that is designed to hold large lobster, but they permit small ones to escape. A similar mechanism to fend off hostile takeovers stipulates that a convertible debenture holder can not convert his debentures into equity shares if he already holds, or going to hold as a result of the conversion, 10% or more of the company's equity shares.