
Loose Leaf for Corporate Finance Format: Loose-leaf
12th Edition
ISBN: 9781260139716
Author: Ross
Publisher: Mcgraw Hill Publishers
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Question
Chapter 29, Problem 5CQ
Summary Introduction
To explain: Poison pills are good or bad for the stockholders and to explain that the acquiring firms are able to get around the poison pills.
Poison Pills:
Poison pill is a technique used by the target company to prevent itself from a hostile takeover. It is the strategy to discourage a hostile takeover. It is a pill used to eliminate the possibility of a hostile takeover.
Hostile Takeover:
It is the takeover of the target firm by an acquirer firm in which the takeover would not be approved by the management of the target firm. It is a type of takeover against the wishes of the board of directors on the takeover of the company.
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