▁ 2 ) ▁the ▁shares ▁of ▁one ▁or ▁more ▁large ▁stock hold ers . ▁The ▁acqu ir er ▁holds ▁the ▁option ▁to ▁exercise ▁the ▁shares ▁at ▁a ▁higher ▁price ▁in ▁the ▁event ▁of ▁sale ▁to ▁a ▁higher ▁bid der , ▁or ▁to ▁vote ▁in ▁favor ▁of ▁the ▁acqu ir er ’ s ▁bid . ▁ ▁An ▁asset ▁lock - up ▁occurs ▁when ▁the ▁target ▁firm ▁gr ants ▁an ▁option ▁for ▁the ▁ac quisition ▁of ▁an ▁asset . ▁ ▁This ▁is ▁also ▁known ▁as ▁a ▁crown ▁j ew el ▁lock - up . ▁ ▁Leg al ▁System ▁vs . ▁Lock - Up ▁Pro vis ions ▁ ▁In ▁many ▁cases , ▁lock - up ▁prov isions ▁may ▁imp ede ▁“ free ▁competition ”, ▁and ▁thereby ▁restrict ▁the ▁market ▁from ▁acting ▁naturally ▁by ▁prevent ing ▁rival ▁b ids ▁for ▁the ▁target ▁company . ▁▁▁ ▁Cour ts ▁will ▁appro ve ▁lock ups ▁if ▁they ▁find ▁that ▁the ▁lock up ▁was ▁used ▁to ▁encou rage ▁a ▁bid der ▁to ▁make ▁an ▁offer ▁and ▁not ▁as ▁a ▁device ▁to ▁end ▁an ▁au ction ▁or ▁b idd ing ▁process . ▁As set ▁lock - ups , ▁however , ▁disc ou rage ▁other ▁b idd ers , ▁and ▁are ▁generally ▁disc ou rag ed ▁by ▁the ▁courts . ▁ ▁See ▁also ▁ ▁Po ison ▁pill ▁ ▁Mer gers ▁and ▁ac quis itions ▁ ▁Micro e conom ics ▁ ▁Indust rial ▁organization ▁ ▁Category : Mer gers ▁and ▁ac quis itions <0x0A> </s> ▁Andrew ▁Gar rett ▁( 1 8 2 3 –