shark repellent
Học thuậtThân thiện
Definition
Noun: A defensive strategy or measure adopted by a company's management to make the company less attractive or more difficult to acquire in a hostile takeover attempt.
Usage
This term is used specifically in the context of corporate finance and mergers & acquisitions. It describes legal or financial provisions enacted to deter or prevent an unwanted takeover bid.
Examples
- The board enacted a shark repellent by introducing a poison pill provision.
- One common shark repellent is a staggered board, where only a fraction of directors are elected each year.
- The company's strong shark repellent strategies successfully discouraged the aggressive bid from the competitor.
Advanced Usage
- "Golden parachute" as shark repellent: Extremely lucrative severance packages for top executives that activate upon a takeover, making the acquisition more costly.
- "Supermajority provision" as shark repellent: A charter amendment requiring a high percentage (e.g., 80%) of shareholder votes to approve a merger, making hostile takeovers very difficult to execute.
Variants and Related Words
- Takeover defense (n): A more general term for strategies used to prevent hostile takeovers.
- Poison pill (n): A specific type of shark repellent that allows existing shareholders to purchase additional shares at a discount, diluting the acquirer's stake.
- Porcupine provision (n): Another informal term for a strong set of anti-takeover defenses.
Synonyms
- Anti-takeover measure
- Takeover defense
- Corporate defense mechanism
Related Phrases
- To adopt a shark repellent: The act of implementing such a defense.
- The company adopted a shark repellent to protect its independence.
- To be shielded by shark repellents: Describes a company protected by these measures.
- The firm was well shielded by various shark repellents.
Noun
- a measure undertaken by a corporation to discourage unwanted takeover attempts