preemptive right

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preemptive right

n.
The right of a company's existing stockholders to purchase enough shares to maintain their overall ownership percentage in the event of a new stock issue.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.preemptive right - the right granting to shareholders the first opportunity to buy a new issue of stock; provides protection against dilution of the shareholder's ownership interest
preemption, pre-emption - the right to purchase something in advance of others
Translations
신주인수권
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References in periodicals archive ?
The pre-emptive right may be provided by a company's charter if the number of its shareholders does not exceed 50.
Laufmann assured though that it holds "a strategic pre-emptive right over Glencore Xstrata's interest" and that it "has a considerable 'say' in any Tampakan divestment process.
Mike Chan, managing director of RHB, said that the company planned a joint venture, initially combined with a pre-emptive right to buy out the joint venture a few years down the road.
Botswana will not exercise its pre-emptive right to acquire an additional 10% stake in De Beers, the country's Ministry of Minerals, Energy and Water Resources, said earlier this week, officially announcing the Botswana Government's decision to withdraw from the deal.
Telenor remains confident that the arbitration tribunal will recognize Telenor's right to receive the pre-emptive right shares if Vimpelcom's proposed acquisition of Wind Telecom is completed," said Telenor's Melgaard.
4 percent in the aluminium company, has a pre-emptive right to acquire the share.
The Tunisian ministry for technology and communications has asked Qatar Telecom to exercise its pre-emptive right to buy the 50 percent it doesn't own in Tunisiana from Orascom, the report said.
BHP Billiton, which also has a 25% stake in Bajo de la Alumbrera, has a pre-emptive right to purchase Rio Tinto's 25% interest, should it care to do so.
Although BHP had made a winning bid of $332 million for control of Caemi, Japan's Mitsui trading company used its pre-emptive right to buy 60% of Caemi's ordinary shares and raise its stake in the company to 100%.
The agreement also covers the merchant bank's pre-emptive right to Eurafrance's stake in Mediobanca.
Based on the current shareholders' agreement with MOL, Croatia has a pre-emptive right to MOL's INA shares in the case that MOL decides to divest them and Croatia could have a veto right in strategic issues as long as MOL has a 25% stake in INA.
The report said that the firm aims to receive pre-emptive right to negotiate purchasing shares and marketing of Aston's coal mine in New South Wales through the planned share acquisition.