Poison Pill (n): Learn what the means through example!

What does “Poison Pill (n)” mean?

"Poison Pill" means a strategy that a company uses to make itself less attractive to potential buyers, involving measures that would make it difficult or undesirable for another company to acquire or take over the company, with the purpose of protecting the company from hostile takeovers or unwanted acquisitions.

What context can I use the in?

Example

The company's board of directors implemented a poison pill strategy to deter any potential hostile takeovers.

Example

The poison pill provision in the company's bylaws makes it less attractive for other companies to acquire.

Example

Investors were concerned about the company's use of a poison pill as it could negatively impact the stock price

Is “Poison Pill (n)” an expression, an idiom, or a proverb?

“Poison Pill (n)” 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 (n)” effectively in context?

You can use "Poison Pill" to describe a strategy that a company uses to make itself less attractive to potential buyers. It emphasizes the implementation of measures that would make it difficult or undesirable for another company to acquire or take over the company. For example, you might say, 'The company's board of directors implemented a poison pill strategy to deter any potential hostile takeovers.'

  • 1Business

    The poison pill provision in the company's bylaws makes it less attractive for other companies to acquire.

  • 2Investment

    Investors were concerned about the company's use of a poison pill as it could negatively impact the stock price.

  • 3Corporate Governance

    The CEO proposed implementing a poison pill to protect the company from unwanted acquisitions.

Similar phrases to “Poison Pill (n)”:

Anti-takeover measures

Strategies implemented by a company to prevent or deter hostile takeovers

Example

The company adopted various anti-takeover measures to protect itself from unwanted acquisitions.

Defensive tactics

Actions taken by a company to defend against hostile takeovers

Example

The board of directors employed defensive tactics to resist the hostile takeover attempt.

A financial arrangement that provides substantial benefits to executives in the event of a change in control of the company

Example

The CEO negotiated a golden parachute agreement as part of his employment contract.

Good things to know:

Where does the phrase “Poison Pill (n)” come from?

The origin of the phrase "Poison Pill" is unknown.

Is “Poison Pill (n)” common in everyday conversation?

Yes, "Poison Pill" is a commonly used expression in business and finance contexts. It is frequently used to discuss strategies employed by companies to protect themselves from hostile takeovers or unwanted acquisitions.

What tone does “Poison Pill (n)” have?

"Poison Pill" conveys a tone of caution and defense. It is often used to describe measures taken by companies to safeguard their interests and maintain control.

Can “Poison Pill (n)” be used in informal and formal settings?

Yes, "Poison Pill" is a formal expression primarily used in business and finance settings. It is commonly used in discussions among professionals, such as in board meetings, corporate governance discussions, and financial reports.

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's board of directors implemented a poison pill strategy.' However, in informal conversations, people might understand the phrase even if used alone, like saying 'The company's poison pill is a defensive measure.'

Synonyms & Antonyms

Synonyms

  • anti-takeover measures
  • defensive tactics
  • golden parachute
  • corporate defenses
  • takeover deterrents

Antonyms

  • friendly acquisition
  • open to acquisition
  • attractive target
  • willing seller
  • no defenses

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