What is a Corporate POISON PILL?

Arcane Financial Tactic

By Staff Reporters

I. DEFINITION: A poison pill is a defense tactic utilized by a target company to prevent or discourage hostile takeover attempts. Poison pills allow existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of a new, hostile party.

KOHLS News: https://www.cnbc.com/2022/02/04/kohls-says-takeover-offers-undervalue-its-business.html

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II. DEFINITION: A hostile takeover refers to the acquisition of one company by another corporation against the wishes of the former. The company being acquired in a hostile takeover is called the target company while the one executing the takeover is called the acquirer. In a hostile takeover, the acquirer goes directly to the company’s shareholders or fights to replace management to get the acquisition approved. Approval of a hostile takeover is generally completed through either a tender offer or a proxy fight.

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CITE: https://www.r2library.com/Resource/Title/082610254

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See the source image

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MORE: https://www.wallstreetmojo.com/poison-pills/

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FINANCE: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

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