Definition

Noun: A strategy, measure, or set of provisions enacted by a company's management or board of directors to resist, prevent, or make less attractive an unsolicited or hostile acquisition attempt by another company or investor group. The primary goal is to maintain corporate control and independence.

Usage

This term is used in the context of corporate finance, mergers and acquisitions (M&A), and corporate governance. It describes legal and financial tactics employed by a target company.

Examples

• The board implemented a poison pill as an anti-takeover defense.
• Staggering the election of board members is a common anti-takeover defense.
• The company's strong anti-takeover defenses made the hostile bid prohibitively expensive.

Advanced Usage

• "To adopt/implement an anti-takeover defense": To formally put a defensive measure in place.
• "To strengthen/bolster anti-takeover defenses": To enhance existing defenses, often in response to perceived vulnerability.
• "Shareholder-approved anti-takeover defense": A defense mechanism that has been voted on and approved by the company's shareholders, which can make it more legally robust.

Variants and Related Words

• Takeover defense (noun): A more general synonym, often used interchangeably with "anti-takeover defense."
• Shark repellent (noun, informal): A colorful slang term for an anti-takeover defense, implying it repels predatory acquirers ("sharks").
• Defensive measure (noun): A broader term that can include anti-takeover tactics.

Synonyms

• Takeover defense
• Hostile takeover defense
• Corporate defense mechanism

Related Phrases & Terms

• Poison pill (noun): A specific type of anti-takeover defense that dilutes the acquirer's stake by allowing other shareholders to buy more shares at a discount.
• Golden parachute (noun): Lucrative benefits guaranteed to top executives if they lose their jobs after a takeover, making the acquisition more costly.
• Staggered board (noun): A board structure where only a fraction of directors are elected each year, delaying a bidder's ability to gain control.
• White knight (noun): A friendly company invited to acquire the target company to rescue it from a hostile bidder.

Noun

1. resistance to or defense against a hostile takeover