Macaroni Defense
An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is taken over. Investopedia Says:
Why is it called Macaroni Defense? Because if a company is in danger, the redemption price of the bonds expands like Macaroni in a pot! Related Terms:
Bankmail
Bond
Greenmail
Lobster Trap
Pac Man
People Pill
Poison Pill
Redemption
Shark Repellent
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