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Scorched-Earth Policy

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Scorched-earth policy
Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off its crown jewels, or schedule all debt to become due immediately after a merger.

Scorched Earth Policy
An antitakeover measure in which a company sells many or all of its "good" or desirable assets and/or issues an extraordinary amount of debt. A scorched earth policy is designed to make the company less attractive to potential acquirers. The obvious disadvantage to a scorched earth policy is the possibility that, even if the company remains independent, it may have acquired so many liabilities that it may not be able to maintain its operations easily. See also: Poison pill, Suicide pill.


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Descriptions of the British Army's scorched-earth policy, Benedict Arnold's treason, and mutinies by veteran soldiers are compelling enough on their own.
The heads of the two countries' powerful intelligence services eI| Omar Suleiman for Egypt and Salah Gosh for Sudan eI| also joined the two-hour meeting about the six-year-old war in Darfur where Khartoum's scorched-earth policy has prompted the arrest warrant request from ICC prosecutors.
The heads of the two countries' powerful intelligence services -- Omar Suleiman for Egypt and Salah Gosh for Sudan -- also joined the two-hour meeting about the six-year-old war in Darfur where Khartoum's scorched-earth policy has prompted the arrest warrant request from ICC prosecutors.
 
 
 
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