scorched earth


Also found in: Dictionary, Legal, Wikipedia.

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 ?
Scorched Earth taps into a debate that many say is the last major impediment to warming US-Vietnam relations.
For their part, the rebels have accused Yemen's military of using phosphorus bombs in its Operation Scorched Earth, launched on August 11 against their stronghold in the country's northern province of Saada.
In other words, the policy of scorched earth used in Afghanistan has shown its inability to put an end to the fundamentalist rebellion in the country.
The Sanaa government launched Operation Scorched Earth on August 11 with the aim of finally crushing the five-year-old uprising.
THE evil anti-matter duplicate of Alex James' engaging A Bit Of A Blur, Luke Haines' scorched earth memoir stumbles drunkenly through the 1990s with a bad word for pretty much everyone.
That being said, the whole thing is laid out beautifully and there are times when it hits hard, like Julia Hasting's two page spread of pitch black comic panels with rain sleeting across the gutter, or Guy Billout's Chris Ware-esque drawing of the last house left on a scorched earth.
SCORCHED EARTH Wrecked greens at club after blunder
Hence, everything becomes a scorched earth proceeding.
Battles in ``Resistance'' featured a lot of scorched earth that exploded beautifully, as well as some pretty smart bad guys that knew how to take cover.
Fire bosses are waiting for funding approval to launch Operation Scorched Earth to stamp out the blazes that devastate swathes of Forestry Commission land every year.
Therefore, scorched earth is the strategy with the biggest rewards and the biggest risks.
So, for all of us Americans, the majority now, who don't share this Administration's scorched earth brand of politics, who don't share their vision of a new America and their policies of shame, we must remain vigilant, and we will not be deterred, because what it comes down to is a question of conscience.