antitakeover measure

(redirected from Antitakeover Tactic)

Antitakeover Measure

Periodic or continual measures a firm's management takes to discourage unwanted or hostile takeovers. One example of an antitakeover measure is the macaroni defense, in which the company issues a large number of bonds with the proviso that they must be redeemed at a high price if the company is taken over. See also: Shark Watcher.

antitakeover measure

An action by a firm's management to block or halt a takeover by another party. Examples of antitakeover measures include a fairprice amendment, staggered terms of office for directors, and a requirement for an increased number of affirmative votes from shareholders to approve a takeover. See also show stopper.
References in periodicals archive ?
Polaroid was the first company to successfully employ an ESOP as an antitakeover tactic. On its face, using an ESOP to fend off a hostile takeover would seem to violate the intent of Congress in establishing the generous financial incentives outlined above; after all, resistance to hostile takeovers likely has the effect of reducing, rather than increasing, corporate productivity.
The above cases illustrate the great utility of ESOPs as an antitakeover tactic. However, a host of issues are raised.
Questions as to the appropriateness of tying pension benefits to ESOPs raises yet another issue: whether or not using ESOPs as an antitakeover tactic is in the firm's long-term interest.
The Polaroid case is advanced as a paradigm of how ESOPs might be used as an antitakeover tactic. The fact that Polaroid has had a sustained history of sanctioning employee empowerment in the workplace should not be lost to the reader (after all, such evidence was not lost to the courts).
"Antitakeover Tactics: Management 42, Stockholders O." Business Horizons (September/October): 17-25.
Much has been written about antitakeover tactics and the director's role in a hostile takeover, but what about the director's role in the friendly takeover?