The best and most coveted assets/ divisions/ units in a company in terms of value, profitability and business prospects. Companies may sell off (divest) existing assets/ divisions/ units to avoid takeover when a bidder shows interest in them. A target company can reduce its attractiveness by selling off its crown jewels. This defensive tactic is also known as a scorched land policy as it can negatively impact the target company’s stockholders if the crown jewels are worth more to the company than to a potential acquirer.

This tactic is often used in risk arbitrage.