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| Contingent Value Rights (CVRs) |
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Contingent Value Rights (CVRs)
A contingent instrument issued in an acquisition to give shareholders of the acquired company a consistently valued stake in the surviving company. CVRs may take the form of a put spread to guarantee that the total proceeds from the exchange of stock reach a certain value or the form of a call warrant with a payoff tied to the revenue or earnings of the acquired business.
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Glossary *
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