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An antitakeover measure in which a company issues a large number of bonds with the provision that they must be redeemed at a high price if the company is taken over. The macaroni defense expands the cost of a hostile takeover (just like macaroni expands when it cooks). However, it can make a friendly takeover more difficult.
A defensive tactic against a hostile takeover in which the potential target company issues a large number of bonds that must be redeemed at a substantial premium to par in the event the company is taken over. The required redemption substantially expands the cost of a hostile takeover just as macaroni expands when placed in boiling water.