Poison Pill Defense
One of the ways a company can protect itself from a hostile takeover bid is by adopting a poison pill defense.
Poison pill
A tactic used by a corporation to discourage the hostile takeover by another company.
dead-hand poison pill investment & finance definition
A technique used to fight unwanted takeover attempts that dilutes the stock holdings of an unwanted acquirer.
Poison pill
A takeover defense tactic designed to make a hostile takeover prohibitively expensive.
Poison Pill
A strategy used by corporations to discourage hostile takeovers. With a poison pill, the target company attempts to make its stock less attractive to the acquirer. There are two types of poison pills: ...
Poison Pill
Steps taken by a corporation to thwart a hostile takeover attempt.
Poison Pill An anti-takeover plan devised to automatically be activated when the company gets bought over in an unfriendly takeover. A Golden Parachute is one such device.
Poison Pill
An attempt to prevent a company's takeover.
Portfolio ...
Poison Pill
Definition: A poison pill is a way to make a company less attractive to a hostile buyer. This prevents hostile takeovers and changes in management. Advice: Common types of poison pills include the following: 1.) The right for existing ...
Poison pill
Anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value.
people pill A type of poison pill action in which most or all of the current management... per Signifying, for each. per capita Statistically accepted as average per person. Per Capita is used to quantify...
Occasionally companies use preferred shares as means of preventing hostile takeovers, creating preferred shares with a poison pill or forced exchange or conversion features that exercise upon a change in control.
Rights Agreement (aka "Poison Pill")
An anti-takeover arrangement often established by a company in anticipation of a hostile takeover attempt.
A stipulation on a defense mechanism (or poison pill) used by companies in order to protect against a merger or takeover by another company.
The most common reason a company will issue blank check preferred stock is to create a "poison pill" whereby the rights associated with the stock make a takeover unattractive.
So, in short, no, the cash isn't needed for a takeover defense... besides, if they're worried about a takeover, why not just put a poison pill in place?
 See also: Share, Stock, Market, Shareholder, Investment
  
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