TAKEOVER DEFENSE

takeover defense.A measure taken by a corporation to discourage hostile takeover attempts. — Often shortened to defense. — Also termed shark repellent.
structural takeover defense.A legal mechanism adopted by a corporation to thwart any future takeover bid without having any financial or operational effect on the target corporation. transactional takeover defense.A financial or operational transaction designed to make a present or future takeover bid more difficult by raising a company’s share price, paying off the bidder, or reducing a bidder’s profit. • Examples include issuing new shares of stock, acquiring expensive assets, and adopting a poison-pill defense
. See POISON PILL; PORCUPINE

[Blacks Law 8th]