suicide pill


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Related to suicide pill: potassium cyanide

Suicide pill

A hostile takeover prevention tactic that could destroy the target company. Taking on a large amount of debt to prevent the takeover might cause bankruptcy, for example.

Suicide Pill

An antitakeover measure stipulating that shareholders on the receiving end of a hostile takeover may buy shares in their own company at a price below fair market value. Once the acquisition is complete, the provision allows these same shareholders to buy more shares in the new company for below market value. This forces shareholders in the acquiring company to suffer a devaluation and dilution of their own shares. This is done to discourage hostile takeovers among the shareholders of the acquiring companies. In essence, a suicide pill is identical to a poison pill except for degree; the term suicide pill indicates that the target company may intentionally go bankrupt, rather than simply weaken itself.

suicide pill

A poison pill provision so devastating to the target of a takeover attempt that the target company may have to be liquidated to satisfy its creditors. For example, the company's directors may institute a suicide pill giving stockholders the right to exchange their stock for debt if a raider acquires more than a specified percentage of the company's outstanding shares. The tremendous increase in debt will effectively doom the target company if the takeover attempt is successful.
References in periodicals archive ?
Democrats 66, the party of Health Minister Els Borst who guided the Bill through parliament, says the next government should consider the introduction of a suicide pill for patients who are healthy, but simply tired of life.
Secretary of State Colin Powell and Attorney General John Ashcroft have been meeting with Mexican Foreign Minister Jorge Castaneda, the "former" Mexican Communist Party radical, to formulate an amnesty plan that can be sold to Republicans as something other than a suicide pill.
Press reports say that a suicide pill could soon be available to buyers over the Internet.
In one case, it would not be much of an exaggeration to say that one school of library and information science even chose to treat it as a suicide pill (Haywood, 1991).
Mum-of-two Jade revealed she asked for a suicide pill when doctors told her she was dying.
If the Brent Tories and Brent New Labour have only one suicide pill between them,I suggest they do the decent thing and toss it to Iain DuncanSmith -Playwright and commentator Keith Waterhouse.
At one point, NRO's Kathryn Jean Lopez asked Nitschke who would qualify for access to his suicide pill.
A physician dubbed Dr Death said yesterday he was hoping to develop a make-it-yourself suicide pill to sidestep Australia's strict anti-euthanasia laws.
JADE Goody asked doctors for a suicide pill moments after being told she had weeks to live.