poison pill

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poison pill

n. Informal
A strategy intended to make a hostile takeover of a corporation more difficult, as by granting of special rights to existing shareholders upon the occurrence of the purchase of a significant amount of stock by an intended acquirer.

poison pill

n
(Banking & Finance) finance a tactic used by a company fearing an unwelcome takeover bid, in which the value of the company is automatically reduced, as by the sale of an issue of shares having an option unfavourable to the bidders, if the bid is successful

poi′son pill`


n.
a means of preventing a hostile takeover of a corporation, as by issuing a new class of stock or guaranteeing benefits to employees, which would be a burden to a buyer.
[1985–90]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.poison pill - the target company defends itself by making its stock less attractive to an acquirer
porcupine provision, shark repellent - a measure undertaken by a corporation to discourage unwanted takeover attempts
suicide pill - a poison pill with potentially catastrophic implications for the company it is intended to protect
References in periodicals archive ?
Urges Stockholders to Vote Gold Proxy Card "FOR" Yucaipa's Three Board Nominees and "FOR" Yucaipa's Poison Pill Amendment
John Cornyn voted with the tea party senator on this poison pill amendment.
This latest breach of fiduciary duties by the Quickturn Board members came less than a week after the Delaware Court of Chancery ruled that the Quickturn directors breached their fiduciary duties in adopting a poison pill amendment.