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Poison Put |
Also found in: Dictionary/thesaurus, Legal, Wikipedia, Hutchinson | 0.01 sec. |
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Poison put A covenant allowing the bondholder to demand repayment in the event of a hostile takeover. Poison-Put Bond A bond that allows bondholders to redeem before maturity at a high price should certain, named events take place. These events commonly include restructuring, a leveraged buyout, an attempted hostile takeover, or paying dividends in excess of a certain amount or percentage. Poison-put bonds can act as an anti-takeover measure; they help management discourage takeovers by raising their expense. On the other hand, when the company is going through a difficult time, poison-put bonds can limit management's restructuring options for the same reason. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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