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.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

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]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
"We welcome this agreement, and hope that it cements that [the CSA provision] which is clearly a controversial poison pill policy rider will not be included as part of the final spending package agreed to by the House and Senate, and signed into law by the President," the groups wrote.
Those compacts which specify what games tribes can and cannot operate, and what revenue from gambling tribes share with the state also include a "poison pill" provision.
We believe this pattern shows that the recent increase in Mitek's stock price has been almost exclusively driven by M&A speculation, and in the absence of a transaction, we believe Mitek's shares would undoubtedly fall back to a similar range where they were trading prior to these extraordinary events...Instead of change, however, the Board has pursued a path of entrenchment, most notably through the recent adoption of a "poison pill," which prompted an 8% decline in Mitek's stock price over the three trading days following its adoption.
VILNIUS: Israeli Prime Minister Benjamin Netanyahu lashed out Friday at the European Union over its first financial support package to help bolster Iran's flagging economy, calling it a big mistake" and like a poison pill to the Iranian people." Speaking on a trip to Lithuania, Netanyahu criticized the EU, which announced Thursday a first tranche of 18 million euros ($21 million), part of the bloc's commitment to keeping the Iran nuclear deal alive.
The "poison pill clause" is part of an agreement signed by the airport and Department for Transport that would allow Heathrow to recover its costs if an alternative scheme had been preferred by the government or if the government withdraws support to expand Heathrow.
The court rejected the "poison pill" provisions developers often use to insulate themselves from liability for construction defects, design flaws and other claims condominium owners might pursue against the developers of their communities.
Icahn previously sent a letter to the board chairman asking to replace two board members; change voting requirements to a supermajority for any proposals on executive pay, acquisitions, divestures and the like; and to kill a poison pill provision the company adopted in late 2017, when Icahn and others opposed SandRidge's proposed buyout of Bonanza Creek Energy.
can use a poison pill to defend itself against a hostile bid.
The rules regarding shareholder rights plans, also known as "poison pills", ensure that boards of directors facing a hostile takeover bid can retain a poison pill for a period of time in order to search for other potential offers.
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.
May 2, 2014), the Court of Chancery found that a two-tiered poison pill adopted by Sotheby's, which limited activist investors to 10 percent stakes but permitted passive investors to acquire up to 20 percent, was a reasonable and therefore legally permissible response to rapid acquisitions of its stock by activist hedge funds.
M2 EQUITYBITES-September 17, 2014-Auxilium responds to unsolicited Endo offer with poison pill