Scorched-earth policy


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Related to Scorched-earth policy: Hundred Days

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 ?
Regular crowds of about 30,000 are still decent but barely larger than what Villa would have expected last season, when David O'Leary's scorched-earth policy led the club into the lower reaches of the table
Nice guy Alex may be, but when it comes to his enemies he operates a scorched-earth policy.
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.
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.
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.
In a recent blog post, he explains why Google will have to reconsider its scorched-earth policy toward advertisers in health, diet and business opportunity niches.
He could conduct his own scorched-earth policy by embedding his troops into the towns," he said.
To those in charge: Thanks for the scorched-earth policy.
Since oil exportation began in 1999, the war has taken a new form: what the State Department describes in human rights reports as a government scorched-earth policy surrounding the oilfields.
The former Chief Constable of West Yorkshire said: "The scorched-earth policy was often ineffective and the war against drugs needed a global, multi-agency approach.
We say it because we can see no other way of halting the genocidal scorched-earth policy of Milosevic.