pac-man strategy
Học thuậtThân thiện
Definition
Noun: A defensive corporate takeover strategy in which a company that is the target of a potential acquisition threatens to reverse the situation by attempting to acquire the company that is trying to acquire it. This strategy is named after the classic video game character Pac-Man, who consumes enemies to survive.
Usage
The term is used in the context of corporate finance, mergers and acquisitions (M&A), and business strategy. It describes a specific, aggressive defensive tactic.
Examples
- The board adopted a Pac-Man strategy, announcing a tender offer for the hostile bidder's shares.
- To fend off the unwelcome takeover attempt, the company's only viable option was to employ a Pac-Man strategy.
- The effectiveness of a Pac-Man strategy depends heavily on the relative financial strengths of the two companies.
Advanced Usage
- The strategy is considered a form of a "reverse takeover" defense. It is a high-risk tactic, as it can lead to a costly bidding war or significant debt for the defending company.
- It is often a strategy of last resort when other defenses (like a "poison pill") are not available or have failed.
Variants and Related Words
- Pac-Man Defense: A synonymous term for the same strategy.
- Takeover Defense: The general category of strategies to prevent an unwanted acquisition.
- Reverse Takeover: A broader term for any situation where a smaller company acquires a larger one, which can be the result of a Pac-Man strategy.
Synonyms
- Counter-takeover bid
- Reverse takeover bid
Related Phrases
- "To launch a Pac-Man defense": To execute this specific strategy.
- Faced with a hostile bid, the company was forced to launch a Pac-Man defense.
Noun
- the target company defends itself by threatening to take over its acquirer