poison pill


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.

Use poison pill in a sentence

The poison pill was a strategy that was used by the company who was not ready for a significant change.

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The poison pill was something I had to keep track of because it was important to our development and our safety.

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The CEO of ABC Company decided to take a poison pill and issue company's shareholders preferred stock to avoid being taken over by corporate raiders.

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