A poison pill refers to what some companies do to reduce their value in order to prevent themselves being taken over by another company.
[business]
This level of compensation is essentially a poison pill to put off any rival bidders.
poison pill in British English
noun
finance
a tactic used by a company fearing an unwelcome takeover bid, in which the value of the company is automatically reduced, as by the sale of an issue of shares having an option unfavourable to the bidders, if the bid is successful
poison pill in American English
US
Business
any defensive measure for preventing the takeover of a corporation by making its acquisition prohibitively expensive for the party attempting to acquire it
poison pill in Finance
(pɔɪzən pɪl)
Word forms: (regular plural) poison pills
noun
(Finance: Corporate)
A poison pill is a way of trying to stop a takeover by doing something to make the company worth much less if the takeover were successful.
Some believe this level of compensation is essentially a poison pill to put off any rival bidders.
The company adopted a poison pill technique to protect them against hostile takeovers.
A poison pill is a way of trying to stop a takeover by doing something to make the company worthmuch less if the takeover were successful.