poison pill

[poi-zuhn pil]

noun

1. Also called suicide pill. a pellet or capsule of a quick-acting poison, as cyanide, for a spy to ingest when faced with capture or torture.

2. Financial Slang.,  any of various business devices created to prevent a company from being taken over by another, as issuing a new class of stock or stock warrants that would become costly to the buyer in the event of a takeover.

poison pill

noun

1. finance a tactic used by a company fearing an unwelcome takeover bid, in which the value of the company is automatically reduced, as by the sale of an issue of shares having an option unfavourable to the bidders, if the bid is successful

Word History and Origins

Origin of poison pill¹

First recorded in 1945–50