poison pill(redirected from Macaroni Defense)
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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.
(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
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.
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|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