poison pill

Definition

Defensive tactics that make hostile takeover by a corporate-raider prohibitively expensive or unattractive. Poison pill takes several forms: (1) provision that makes the firm's all debts immediately payable if the board of directors is changed; (2) distribution of warrants or purchase rights for buying the firm's stock (shares) at a heavy (usually 50 percent) discount when a triggering event (takeover attempt) occurs, thus immediately diluting the raider's ownership interest and voting rights; and/or (3) issuance of a new series of preferred stock (preference shares) that gives stockholders/shareholders (not including the raider) right to redeem them at a hefty premium after a takeover. See also leveraged recapitalization and shark repellant.

Use 'poison pill' in a Sentence

Sometimes you just need to take the poison pill and get it over with before you suffer any longer in your plan.

I did not trust the doctor because he might give me a poison pill that would kill me, or injure me very badly.

The poison pill was administered by the opposing firm in the market which made out next play complex and difficult to create.

单词	poison pill
释义	poison pill Definition Defensive tactics that make hostile takeover by a corporate-raider prohibitively expensive or unattractive. Poison pill takes several forms: (1) provision that makes the firm's all debts immediately payable if the board of directors is changed; (2) distribution of warrants or purchase rights for buying the firm's stock (shares) at a heavy (usually 50 percent) discount when a triggering event (takeover attempt) occurs, thus immediately diluting the raider's ownership interest and voting rights; and/or (3) issuance of a new series of preferred stock (preference shares) that gives stockholders/shareholders (not including the raider) right to redeem them at a hefty premium after a takeover. See also leveraged recapitalization and shark repellant. Use 'poison pill' in a Sentence Sometimes you just need to take the poison pill and get it over with before you suffer any longer in your plan. I did not trust the doctor because he might give me a poison pill that would kill me, or injure me very badly. The poison pill was administered by the opposing firm in the market which made out next play complex and difficult to create.
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