antitakeover measure

(redirected from Anti-Takeover Tactic)

Antitakeover Measure

Periodic or continual measures a firm's management takes to discourage unwanted or hostile takeovers. One example of an antitakeover measure is the macaroni defense, in which the company issues a large number of bonds with the proviso that they must be redeemed at a high price if the company is taken over. See also: Shark Watcher.

antitakeover measure

An action by a firm's management to block or halt a takeover by another party. Examples of antitakeover measures include a fairprice amendment, staggered terms of office for directors, and a requirement for an increased number of affirmative votes from shareholders to approve a takeover. See also show stopper.
References in periodicals archive ?
Anti-takeover tactics such as "poison pills," if applied properly, can protect shareholder interests in certain situations, but management should seek shareholder approval of these measures, especially when a bid already has been launched.
Rhines wrote: "The effect of these desperate anti-takeover tactics is to delay greatly consummation of our offer and subject Quickturn stockholders to unreasonable and unnecessary market and business risk.