Scorched-earth Policy (Noun)
Meaning
The target company defends itself by selling off its crown jewels.
Classification
Nouns denoting acts or actions.
Examples
- The board of directors implemented a scorched-earth policy to deter the hostile takeover, selling off the company's most valuable assets to make the acquisition less attractive.
- As the activist investor closed in, the target company adopted a scorched-earth policy, spinning off its most prized subsidiaries to render the acquisition less appealing.
- Faced with a potential takeover, the company's management employed a scorched-earth policy, divesting its crown jewels to reduce the company's attractiveness to potential buyers.
- The target company's board responded to the hostile bid by enacting a scorched-earth policy, which involved selling off key divisions and slashing the company's value.
- In a last-ditch effort to avoid a takeover, the company's leadership implemented a scorched-earth policy, dismantling its core business units and disposing of its most valuable assets.