a provision designed to damage the interests of a takeover bidder, e g handsome severance terms for departing managers, which is activated on completion of the bid
One of the techniques used to fend off a hostile bid or unwanted takeover, which includes a large financial penalty that is written into the companys articles and is activated by an unwelcome takeover
A tactic by a company targeted for takeover to make is stock less appealing to the acquiring company in the hope of blocking the takeover For example, the company might issue preferred stock that gives shareholders the right to redeem their shares at a premium after the takeover
A right issued by a corporation as a preventative antitakeover measure It allows rightholders to purchase shares in either their company or in the combined target and bidder entity at a substantial discount, usually 50% This discount may make the takeover prohibitively expensive
A takeover defense tactic designed to make a hostile takeover prohibitively expensive For instance, a firm may issue a new series of preferred stock that gives shareholders the right to redeem shares at a premium price after a takeover Or a poison pill can allow all existing shareholders of the target company except the acquirers to buy additional shares at a bargain price Such measures raise the cost of acquisition and cause dilution, hopefully deterring a takeover bid BACK TO TOP
A corporate provision to combat hostile takeovers When triggered, the poison pill allows shareholders to acquire additional shares at below market price, thereby increasing the number of shares outstanding and making the takeover prohibitively expensive Such plans are relatively new in corporate Canada and are the subject of some controversy regarding whom they are designed to protect
A poison pill refers to what some companies do to reduce their value in order to prevent themselves being taken over by another company. A plan or tactic intended to make a hostile corporate takeover prohibitively expensive, as one in which a company's stockholders are offered shares of stock at a bargain price in the event that a single suitor acquires a high percentage of the stock. something in a company's financial or legal structure that is intended to make it difficult for another company to take control of it
Any tactic by a company designed to avoid a hostile takeover by making the company less attractive Portfolio - A collection of financial assets belonging to an individual or organization Possible reserves - Valuable mineralization not sampled enough to accurately estimate its tonnage and grade, or even verify its existence Also called "inferred reserves " Preferred stock - Shares of a limited liability company that rank ahead of common shares, but after bonds, in distribution of earnings or in claim to the company's assets in the event of liquidation They pay a fixed dividend but normally do not have voting rights, as with common shares
A condition or stipulation set up by the target company that forces the cost of a hostile acquisition to increase dramatically The aim is to make it too expensive for the raider to acquire the firm
A Poison Pill is generally a right (e g the right to buy more shares) given to shareholders of a company so that if their company is the subject of a takeover attempt, those attempting the take-over may be faced with having to deal with such rights, making it more attractive to the shareholders and more onerous for the buyers Poison Pills are often used when one company tries to buy another in a hostile takeover attempt -i e one which is not welcomed by the company
Financial device designed to make unfriendly takeover attempts unappealing, if not impossible For instance, a firm might issue a new series of preferred stock that gives shareholders the right to redeem it at a premium price after a takeover, a measure which would likely raise the cost of an acquisition and cause dilution