shark repellent

Shark Repellent

Any number of measures taken by a corporation to discourage an unwanted takeover attempt.

Notes:

Examples of shark repellent include Golden Parachute contracts with executives, a defensive merger with another company, a super-majority provision, and so on.

See also: Hostile Takeover, Leveraged Recapitalization, Lobster Trap, Macaroni Defense, Pac-man, People Pill, Poison Pill, Safe Harbor, Scorched Earth Policy, Shark Watcher, Sleeping Beauty, Suicide Pill

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shark repellent

A strategy used by corporations to ward off unwanted takeovers. Examples of this antitakeover measure include making a major acquisition, issuing new shares of stock or securities convertible into stock, and staggering the election of directors. Shark repellents often benefit corporate officers more than the stockholders. Also called takeover defense. Compare show stopper. See also poison pill.