The idiom "poison pill" refers to a strategy used by a company to prevent a hostile takeover by making its own stock less attractive to the acquiring company.
This strategy involves implementing measures that would make the company less valuable or less desirable to the acquiring company. For example, the company might issue new shares of stock, diluting the value of existing shares, or take on large amounts of debt, making it less financially attractive to the acquiring company.
The term "poison pill" comes from the idea that the company is taking a toxic or harmful action to protect itself from the hostile takeover.
This idiom is used in business and finance to describe a defensive tactic used by a company to protect itself from a hostile takeover. It is important for investors and business professionals to understand this term, as it can have significant implications for the value and future of a company.
• I don't understand what "poison pill" means.
• The company implemented a "poison pill" strategy to prevent a hostile takeover.
• The CEO used a "poison pill" tactic to fend off the hostile bid from the rival company.
• The board of directors adopted a "poison pill" defense mechanism to protect the company's long-term interests.
• The government introduced a "poison pill" provision in the legislation to discourage foreign investors.
• The shareholders were concerned about the "poison pill" provision in the agreement, which would dilute their voting power.
• I don't understand what you mean by "poison pill." Can you explain it to me in simpler terms?
• The proposed merger was blocked by the target company's "poison pill" provision, which made it unattractive to potential acquirers.
• The activist investor accused the company of using a "poison pill" tactic to entrench management and prevent any change in strategy.
• The CEO argued that the "poison pill" was necessary to protect the company's shareholders from a potential takeover bid.
• The court ruled that the company's "poison pill" was not in the best interest of shareholders and ordered it to be removed.
• The company's board of directors implemented a "poison pill" strategy to prevent a hostile takeover.
• The CEO said that the poison pill was necessary to protect the employees' jobs.
• The investors were not happy with the poison pill provision in the agreement.
• The company's management implemented a poison pill to prevent a hostile takeover.
• The poison pill strategy could backfire if it damages the company's reputation.
• The board of directors approved a poison pill plan to fend off potential bidders.
• I don't know what poison pill means.
• The company has a "poison pill" strategy to protect itself from hostile takeovers.
• The shareholders approved the "poison pill" measure to deter any potential hostile takeover bids.
• The manager implemented a "poison pill" plan to prevent the competition from acquiring the company.
• I don't understand what "poison pill" means.
• After the hostile bidder launched a proxy fight, the company's management unveiled a "poison pill" strategy to make the takeover more difficult and expensive.
• The board of directors decided to activate the "poison pill" provision to fend off the unsolicited acquisition offer.