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.
References in periodicals archive ?
This region was one of the most severely affected by the scorched-earth policy adopted by the government headed by Gen.
Leaning on the Americans, no matter how gently, only produces a heavy-handed backlash and Jack Valenti, the tough-talking Texan who is head of the Motion Picture Association of America will once again descend on Ottawa like a ton of bricks threatening, in his own subtle, charming way, a scorched-earth policy if one penny of American profits are curtailed.
The last Portuguese governor is praised for not following instructions to institute a scorched-earth policy.
He adopts a real scorched-earth policy in his interpretation of the American Dream--and, of course, nothing embodies the American Dream more succinctly than tract housing.
Bahia Al-Mardini, a UK-based Syrian journalist and human rights activist who fled regime persecution, told Arab News: "The scorched-earth policy practiced by the regime, and the Russian and Iranian support it receives, are continuing the suffering of the Syrian people, leading to further bloodshed and fueling further anger from ordinary Syrians who just want to see peace and democracy.
IRBIL, Oct 28 (KUNA) -- Civilians in Northern Iraq are falling victim of suffocation and respiratory illnesses, due to what appears to be a scorched-earth policy employed by retreating so-called Islamic state (IS) militants following the launch of a major military offensive to retake the city of Mosul, said united nations environment programme (UNEP) in statement.
This is part of a larger pattern: the president's scorched-Earth policy of refusing to negotiate in bipartisan way on his health care law, current government funding, or the debt limit.
Ekmeleddin Ihsanoglu stated that the regime in Syria, by rejecting OIC's good offices and ignoring International efforts, deliberately and intentionally followed a scorched-earth policy, and pushed the crisis there to the extreme.
Most of Abyei citizens fled their ancestral homes in the nineties when the militias recruited by President Omer Al-Bashir government implemented scorched-earth policy to pacify the rebellious area.
To those in charge: Thanks for the scorched-earth policy.
However, smoke still hung over the city and buildings were still being set alight in what is thought to be the last gasp of a scorched-earth policy by violent militias.
We say it because we can see no other way of halting the genocidal scorched-earth policy of Milosevic.