poison pill

(redirected from poison-pill)
Also found in: Thesaurus, Legal, Financial.

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 ?
Joe mentioned various defenses the company could pursue, such as a poison-pill resolution, a proxy fight or even greenmail.
In a conference call with analysts Tuesday, Stephen Bollenbach, Hilton president and chief executive, said his company was asking ITT to deactivate the poison-pill provision.
Dalton, which proposed a friendly management and employee buyout (MEBO) of Fujitec on April 23, said the company's poison-pill defense would restrict shareholder rights and damage corporate value and may violate the spirit of the revision of Japan's Securities and Exchange Law.