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 ?
Larry Sabato, director of the University of Virginia's Centre for Politics, warned of a "scorched earth" campaign.
Advocacy groups have long accused the Sudanese government of applying a scorched earth policy in the region as a military strategy, with hundreds of thousands of refugees fleeing to South Sudan and Ethiopia to escape the bomb attacks.
And Defiance desperately tries to move the world of MMO shooters into a brave new direction, set on the scorched earth of our post-apocalyptic planet.
Latakia will become Focus of Alawi-Sunni Contest; Scorched Earth; Hama in Flames; 27% of US Public Say...
Summary: TEHRAN (FNA)- Tehran's Envoy to Syria Mohammad Reza Rauf Sheibani said that the Syrian rebels have failed in their plots in the country's Northwestern city of Aleppo and are now pursuing the policy of scorched earth there.
In this substantial study, Poser (academic staff member, Protestant theology, Philipps-Universitat Marburg, Germany) offers an interpretation of the book of Ezekiel as a fictional account drawn from the extreme events and suffering that accompanied the destruction of the Jewish Temple of Jerusalem in the 6th century BCE, the eradication of the Jewish kingdom, and deportation of the Jewish people to Babylon by Nebukanezer in what has been termed a scorched earth policy.
Scorched Earth: Legacies of the Chemical Warfare in Vietnam
SCORCHED EARTH: LEGACIES OF CHEMICAL WARFARE IN VIETNAM is a recommendation for any collection strong in Vietnam War history.
Another witness said government troops were also burning crops on nearby hillsides in an apparent scorched earth policy.
As a procession of fame-hungry desperados lined up to pay homage to the programme that defined their strange lives, C4's scorched earth policy sucked the last guts out of it.
On the proposal to drain Llanishen Reservoir SCORCHED earth policy, salting the land, poisoning the wells, call it what you will.
I can imagine the palm oil industry will simply replace vast tracts of rainforest by vast tracts of scorched earth, as fragile soils and ecosystems are destroyed by an unsustainable monoculture.