Porcupine Provision (Noun)
Meaning
A measure undertaken by a corporation to discourage unwanted takeover attempts.
Classification
Nouns denoting acts or actions.
Examples
- The company's board of directors approved a porcupine provision that would significantly dilute the ownership stakes of any would-be acquirers.
- To protect itself from hostile takeovers, the corporation adopted a porcupine provision that imposed a steep premium on the purchase of shares above a certain threshold.
- Investors were wary of the company's decision to implement a porcupine provision, fearing it would limit their ability to realize gains in the event of a takeover.
- The porcupine provision was seen as a desperate measure by the struggling company, which was facing pressure from activist shareholders to sell or merge with a rival firm.
- By invoking the porcupine provision, the company's management was able to fend off a hostile takeover bid from a private equity firm, but at a significant cost to its reputation among investors.