scorched earth

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Scorched Earth Policy

An antitakeover measure in which a company sells many or all of its "good" or desirable assets and/or issues an extraordinary amount of debt. A scorched earth policy is designed to make the company less attractive to potential acquirers. The obvious disadvantage to a scorched earth policy is the possibility that, even if the company remains independent, it may have acquired so many liabilities that it may not be able to maintain its operations easily. See also: Poison pill, Suicide pill.

scorched earth

An antitakeover strategy in which the target firm disposes of those assets or divisions considered particularly desirable by the raider. Thus, by making itself less attractive, the target discourages the takeover attempt. Such a strategy is almost certain to penalize the shareholders of the target firm. Compare crown jewel.
References in periodicals archive ?
Summary: With a 2020 campaign launch painting opponents in almost apocalyptic terms, President Donald Trump showed Democrats the scorched-earth treatment they can expect in his fight for reelection.
In his first address to the United Nations General Assembly, in September 2014, he announced that India was withdrawing from peace talks with Pakistan until it agreed to talks in 'an atmosphere of peace without a shadow of terrorism.' Modi proceeded to adopt a scorched-earth strategy in Kashmir and closed all doors for dialogue with Kashmiri politicians.
Lord & Taylor contended that White Flint adopted a "scorched-earth approach" to discovery and took every opportunity to make the litigation more costly.
The United Nations had earlier said the scorched-earth operation, which had left hundreds of villages burned to ash in Myanmar's Rakhine state, amounted to 'ethnic cleansing'.
Parents are saying that there should have been an investigation, and that if there were students guilty of anything then they should have been disciplined rather than the scorched-earth response that the university administration made.
While Monarch remains open to engaging in further discussions toward a consensual agreement, Resolute's failure to communicate with Monarch over the last month with respect to our proposed steps suggests that it has embarked on an ill-advised scorched-earth policy that is not in the best interests of the Company's stockholders and reflects an entrenched Board.
Opposition Jaish Al-Islam (Army of Islam) said the opposition forces had to retreate in Eastern Ghouta after the regime troops used the scorched-earth policy.
The closest Nigerians have been exposed to a jihad are the ravages of Boko Haram and Fulani tribesmen; but a jihad, be it economicJihad or political jihad or social jihad or scorched-earth jihad must necessarily, by Islamic injunctions or brute fatwas, be directed against 'the people of the Book' otherwise known as the Jews and 'the ones who have gone 'astray'' otherwise known as the Christians.
Over 600,000 of them have fled from Rakhine state across the border to Bangladesh since August, driven by a scorched-earth campaign of the Myanmar military against Rohingya insurgents.
Myanmar security forces responded with a scorched-earth campaign against Rohingya villages that the UN and human rights groups have called disproportionate and a campaign of ethnic cleansing.
The description of a "scorched-earth, costs-be-damned crusade" feels free from hyperbole.
As her scorched-earth plan takes shape, Olivia holds no prisoners.