Shark Repellent (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 shark_repellent measure to prevent the hostile takeover by increasing the cost of acquisition for the potential buyer.
- As part of its shark_repellent strategy, the company implemented a poison pill provision that would be triggered if any single shareholder acquired more than 20% of the company's shares.
- The shark_repellent plan, which included a combination of golden parachutes and poison pills, was seen as a key factor in deterring the rival company's hostile takeover bid.
- To ward off potential corporate raiders, the company adopted a shark_repellent that included a requirement for supermajority approval of any merger or acquisition.
- In response to rumors of a potential takeover attempt, the company's management announced plans to implement a shark_repellent in the form of a defensive rights plan.