pension parachute
A pension provision that allows a company to take excess pension funds during a hostile takeover and use them to benefit the pension beneficiaries in some manner. This action prevents the company initiating the hostile takeover from using excess pension funds to finance the hostile acquisition and also serves to ensure some protection for the pension participants. A pension parachute is similar to a poison pill because it deters hostile takeovers.
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pension parachute is ...
... part of the Mergers & Acquisitions and Retirement subjects.
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