poison pill
Definition
Any tactic by a company designed to avoid a hostile takeover. One example is the issuance of preferred stock that gives shareholders the right to redeem their shares at a premium after the takeover.
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Related terms:
people pill, suicide pill, scorched-earth policy, Jonestown defense, shark repellent
'poison pill' appears in the definitions of these other terms on BusinessDictionary.com:
flip-in right, leveraged recapitalization, shark repellant
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