poison pill

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Related to poison pills: greenmail, shark repellents, Golden parachutes

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 ?
Police said that 55-year-old Tahira Jabeen, of Jameel Abad, committed suicide by swallowing poison pills, over a domestic dispute.
The rights plan had come under fire from a shareholder, Florida's Miramar Police Officers' Retirement Plan, which contended that since News had agreed in a 2006 settlement to limit poison pills to only one year without shareholder approval, the two-year life of the current pill exceeded the settlement.
Poison pills discourage hostile takeovers with triggers for the issuance of new shares, which weaken the power of shareholders who exceed a set stake.
Instrument 62-105 would carve out poison pills from the current
They suggest that poison pills enable target shareholders to extract value from acquirers by empowering corporate insiders.
When triggered by potential acquirers, poison pills impose unacceptable levels of dilution on an acquirer.
Firms with poison pills were found to have lower Corporate Social Performance scores than firms without poison pills.
Poison pills issue preferred shares to shareholders in the event of a hostile-takeover attempt, which makes it more difficult for a bidder to acquire the company.
3 percent, while the proposal on poison pills - defenses adopted by companies to make hostile takeovers more difficult - lost 52.
Some shareholders scored wholesale victories in their various public campaigns ranging from proxy contests to forcing companies to submit poison pills for approval.
They don't mention tactics sometimes invoked by management on the defense - poison pills or staggered terms for directors.