Definition

Noun: A porcupine provision is a defensive measure adopted by a company's management to make the company less attractive or more difficult to acquire in a hostile takeover attempt. These provisions are designed to "prick" or deter an unwanted suitor, much like the quills of a porcupine.

Usage

This term is used specifically in the context of corporate finance, mergers and acquisitions, and corporate governance. It describes a pre-planned strategy embedded in a company's charter or bylaws.

Examples

Advanced Usage

• "To trigger a porcupine provision": Refers to the activation of such defensive measures, typically when a certain threshold of ownership by a potential acquirer is reached.
  • The attempt to purchase a 15% stake would trigger the porcupine provision, forcing a costly tender offer for all remaining shares.

Variants and Related Words

• Poison Pill: A more common synonym for a broad category of anti-takeover defenses, which includes porcupine provisions. A porcupine provision is a specific type of poison pill strategy.
• Shark Repellent: A general term for any tactic (including porcupine provisions) designed to ward off hostile takeovers.
• Golden Parachute: A different type of anti-takeover measure that provides lucrative benefits to executives if they are terminated after a takeover.

Synonyms

• Anti-takeover defense
• Takeover deterrent
• Defensive measure

Related Idioms/Phrases

• "To put up defenses": While not an idiom containing the target phrase, this is a common expression describing the act of implementing measures like a porcupine provision.
  • Fearing a buyout, the company moved to put up defenses.

Noun

1. a measure undertaken by a corporation to discourage unwanted takeover attempts