Generally a defense measure against hostile mergers and takeovers (takeover defense measure public companies use against hostile takeovers and designed to make the target unattractive) sometimes also called Shark Repellent. – A distinction is often made between – contractual clauses built into a company’s articles of association from the outset, usually ownership restrictions, and – direct, instantaneous strategies that amount to a significant increase in the price of the target company (acquiree: the firm that should be acquired). – The (often sudden) decapitalization undertaken by the company to be acquired is also counted among the poison pills. – See bidder, buy out, acquisition offer, suitor, mergers and acquisitions, hand money, war chest, macaroni defense, material adverse change clause, Pac-Man strategy, mandatory offer, knight, white, shark watcher, spin-off, squeeze-out, voting rights database, synergy potential, trade sale, transaction bonus, takeover, hostile, takeover announcement, white knight. – Cf. 2010 BaFin Annual Report, p. 223 f. (on the term “hostile takeover”; permissibility of defensive measures).
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