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Poison pill

• Anit-takeover device that gives a prospective acquirer's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret agents are instructed to swallow if capture is imminent.

• A takeover defense in which a firm issues securities that give their holders certain rights that become effective when a takeover is attempted; these rights make the target firm less desirable to a hostile takeover.

 
 Embedded terms in definition
 Discount
Firm
Hostile takeover
Hostile
Market value
Market
Rights
Right
Securities
Shareholders
Shares
Takeover
Target firm
 
 Related Terms
 Poison put

<< Point and figure chart Poison put >>

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