Poison put


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Poison put

A covenant allowing the bondholder to demand repayment in the event of a hostile takeover.

Poison-Put Bond

A bond that allows bondholders to redeem before maturity at a high price should certain, named events take place. These events commonly include restructuring, a leveraged buyout, an attempted hostile takeover, or paying dividends in excess of a certain amount or percentage. Poison-put bonds can act as an anti-takeover measure; they help management discourage takeovers by raising their expense. On the other hand, when the company is going through a difficult time, poison-put bonds can limit management's restructuring options for the same reason.
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References in periodicals archive ?
"We had poison put down but they have eaten it all.
Mr Ruddock said illegally placing poison puts wildlife, pets and potentially people at risk.
Defenses may be grouped into five categories: defensive restructuring; poison pills; poison puts; antitakeover amendments; and golden parachutes.