poison pill (redirected from Rights Agreement)

poison pill

n. Informal

A plan or tactic intended to make a hostile corporate takeover prohibitively expensive, as one in which a company's stockholders are offered shares of stock at a bargain price in the event that a single suitor acquires a high percentage of the stock.

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poison pill

n

(Economics, Accounting & Finance / 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

Thesaurus

Noun

1.

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