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Term of the week: "Poison Pill"
A poison pill refers to any strategy taken by a target company to avoid or negatively impact a hostile take-over bid. Many strategies can be adopted: -The company can offer its shareholders new shares at a discount, thus diluting the acquirer's control. -It can dilute its stock by acquiring other smaller companies by stock swap. -It can sign up for new debts discouraging the acquirer from paying the subsequent heavy interests...etc |
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