poison pill

poison pill
/ˌpɔɪz(ə)n 'pɪl/ noun
an action taken by a company to make itself less attractive to a potential takeover bid
COMMENT: In some cases, the officers of a company will vote themselves extremely high redundancy payments if a takeover is successful; or a company will borrow large amounts of money and give it away to the shareholders as dividends, so that the company has an unacceptably high level of borrowing.

Dictionary of banking and finance. 2015.

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  • Poison pill — is a term referring to any strategy, generally in business or politics, to increase the likelihood of negative results over positive ones for a party that attempts any kind of takeover. It derives from its original meaning of a literal poison… …   Wikipedia

  • poison pill — poi·son pill n: a financial tactic or provision used by a company to make an unwanted takeover prohibitively expensive or less desirable Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. poison pill …   Law dictionary

  • poison pill — poison pills N COUNT A poison pill refers to what some companies do to reduce their value in order to prevent themselves being taken over by another company. [BUSINESS] Some believe this level of compensation is essentially a poison pill to put… …   English dictionary

  • poison pill — A poison pill is a strategy designed to prevent a company from being taken over …   The small dictionary of idiomes

  • poison pill — n technical informal something in a company s financial or legal structure that is intended to make it difficult for another company to take control of it …   Dictionary of contemporary English

  • poison pill — ☆ poison pill n. Business any defensive measure for preventing the takeover of a corporation by making its acquisition prohibitively expensive for the party attempting to acquire it …   English World dictionary

  • Poison pill — Anit takeover device that gives a prospective acquiree s shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret agents are …   Financial and business terms

  • poison pill — Anti takeover device that gives a prospective acquiree s shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret government …   Financial and business terms

  • poison pill — noun the target company defends itself by making its stock less attractive to an acquirer • Hypernyms: ↑shark repellent, ↑porcupine provision • Hyponyms: ↑suicide pill * * * noun, pl ⋯ pills [count] business : something that a company does to… …   Useful english dictionary

  • poison pill — UK / US noun [countable] Word forms poison pill : singular poison pill plural poison pills business an action taken by a company in order to make someone less likely to want to start a takeover bid for it …   English dictionary

  • poison pill — n. an element introduced into the restructuring of a corporation so that it becomes undesirable for another corporation to take over. □ Acme Corporation approved a poison pill to prevent a hostile takeover. □ Mr. Boone would have bought the… …   Dictionary of American slang and colloquial expressions

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