What does “Poison pill” mean?
"Poison pill" means a defensive strategy used by a company to prevent a hostile takeover.
What context can I use the in?
Example
The company implemented a poison pill to deter any potential hostile takeovers.
Example
Investors were concerned about the poison pill provision in the company's bylaws.
Example
The board of directors discussed the possibility of using a poison pill to protect the company's interests
Is “Poison pill” an expression, an idiom, or a proverb?
“Poison pill” is a proverb. A proverb is a short saying that teaches us something important or gives us advice. Unlike an idiom, it’s easy to understand even if it uses figurative language.
How would I use “Poison pill” effectively in context?
You can use "Poison Pill" to describe a defensive strategy used by a company to prevent a hostile takeover. It emphasizes the idea of making the company less desirable or more challenging to acquire. For example, if someone asks about a company's anti-takeover measures, you might say, 'They have implemented a poison pill provision in their bylaws.'
- 1Business
The company implemented a poison pill to deter any potential hostile takeovers.
- 2Investment
Investors were concerned about the poison pill provision in the company's bylaws.
- 3Corporate Governance
The board of directors discussed the possibility of using a poison pill to protect the company's interests.
Similar phrases to “Poison pill”:
Greenmail
A practice where a company buys back its own shares at a premium to prevent a hostile takeover
Example
The company resorted to greenmail to fend off the hostile bidder.
Good things to know:
Where does the phrase “Poison pill” come from?
The origin of the phrase "Poison Pill" can be traced back to the 1980s. It was first used in the context of corporate takeovers. The idea behind the phrase is that a company would implement a strategy that would make it less attractive or more difficult for another company to acquire it, just like a pill that is poisonous to potential acquirers.
Is “Poison pill” common in everyday conversation?
Yes, "Poison Pill" is a commonly used expression in the business and finance world. It is frequently used when discussing corporate takeovers, mergers, and acquisitions. However, it may not be as well-known or commonly used in everyday conversations outside of these contexts.
What tone does “Poison pill” have?
"Poison Pill" conveys a tone of caution and defense. It is often used to describe a strategy that companies employ to protect themselves from hostile takeovers. The tone can be serious and strategic, reflecting the importance of safeguarding the company's interests.
Can “Poison pill” be used in informal and formal settings?
Yes, "Poison Pill" is a formal expression primarily used in business and finance contexts. It is commonly used in discussions among professionals, such as executives, lawyers, and investors. While it may not be suitable for casual conversations, it is appropriate in formal settings, such as meetings, presentations, and legal documents.
Can it be used by itself, or is it usually part of a sentence?
It is commonly used as part of a sentence to convey its full meaning. For example, 'The company decided to implement a poison pill to protect itself from hostile takeovers.' However, in some business contexts, people might understand the phrase even if used alone, like saying 'They have a poison pill in place.' to imply the existence of a defensive strategy.
Synonyms & Antonyms
Synonyms
- anti-takeover measure
- defensive tactic
- hostile takeover defense
Antonyms
- merger
- acquisition
- friendly takeover
