poison pill


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Related to poison pill: dead hand poison pill, Poison Put

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 ?
120) Having outlined the legal framework regulating poison pills in the United States, it is my intention now to examine some of the adaptive responses to the poison pill that have developed over the last 25 years.
TAR Holdings may request a waiver of the Poison Pill in order to purchase up to 14.
was allowed by a Delaware judge last week to keep its poison pill -- a shareholder rights plan that makes a hostile takeover so toxic that no one would try -- that has been in place since 2004.
AGN/NYSE, Not Rated) on whether or not calling a special shareholder meeting, which can be convened by any shareholder group owning 25% or more of Allergan's stock, would trigger the Allergan poison pill .
The poison pill "puts a damper" on the chance for a "friendly dialogue," Icahn was quoted as saying by Reuters.
regarding the respective benefits of new poison pill regulation in
M2 EQUITYBITES-July 26, 2013-Air Products adopts poison pill to hinder potential takeover(C)2013 M2 COMMUNICATIONS http://www.
It was reported that over the past six months, private investors like Carl Icahn and Mark Rachesky - co-founder and president of MHR Fund Management - who are considered activist shareholders, have each raised their respective stakes to nearly 15 percent, raising fears of a hostile takeover of Navistar and forcing the company to adopt a poison pill.
Before presenting formal models, it is worth providing some background on how scholars conceptualize the modern public corporation, as well as how the poison pill and the staggered board work in practice.
26 January 2012 - US life sciences tools maker Illumina Inc (NASDAQ:ILMN) said today its board had adopted a rights agreement, or a so-called poison pill, to defend itself from Swiss Roche's (VTX:ROG) hostile attempt to take over the company.
The stockholder rights plan, also known as a poison pill, is aimed to dilute shares of an unfriendly buyer.