- 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 instructed to swallow if capture is imminent. The New York Times Financial Glossary
* * *something in a company's financial or legal structure that is meant to make it difficult for another company to buy it in a takeover:
• The company's poison pill anti-takeover measure prevents a group from purchasing more than 10% of its stock.— see also shark repellent
* * *Actions taken by a company to outwit a predator in a potential hostile takeover, so that swallowing the company will be like swallowing a poison pill. Examples are the issue of high yielding bonds, conditional rights to shareholders to buy shares at a large discount if the takeover succeeds or making massive long-term commitments to the company's pension funds.
* * *poison pill UK US noun [C]► FINANCE, MANAGEMENT, WORKPLACE something that a company does to make itself less attractive to another company that might want to buy it: »
A poison pill defence is any strategy used by a company to protect itself from a hostile takeover bid.
Financial and business terms. 2012.
Look at other dictionaries:
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 — 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