Difference between revisions of "Poison pill"
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(Poison pills often harm the overall value of the company, and interfere with the free market. They can have political or emotional motivations, such as keeping entrenched management in power.) |
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A '''poison pill''' is a tactic by directors of a company, such as [[Twitter]], to make it more difficult for someone to take over the company from outside, such as [[Elon Musk]]. It consists of granting special rights to existing shareholders to thwart a hostile takeover attempt. | A '''poison pill''' is a tactic by directors of a company, such as [[Twitter]], to make it more difficult for someone to take over the company from outside, such as [[Elon Musk]]. It consists of granting special rights to existing shareholders to thwart a hostile takeover attempt. | ||
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| + | Poison pills often harm the overall value of the company, and interfere with the [[free market]]. They can have political or emotional motivations, such as keeping entrenched management in power. | ||
[[category:finance]] | [[category:finance]] | ||
Revision as of 02:31, April 16, 2022
A poison pill is a tactic by directors of a company, such as Twitter, to make it more difficult for someone to take over the company from outside, such as Elon Musk. It consists of granting special rights to existing shareholders to thwart a hostile takeover attempt.
Poison pills often harm the overall value of the company, and interfere with the free market. They can have political or emotional motivations, such as keeping entrenched management in power.