poison pill

American  

[poi-zuhn pil] / ˈpɔɪ zən ˌpɪl /

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.

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poison pill British  

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

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Etymology

Origin of poison pill

First recorded in 1945–50

Example Sentences

But scientists may have just discovered the poison pill needed to drive off these unwelcome dinner guests — a gluten-free option found in ancient Egyptian texts.

From Salon

“In Sacramento, the Cadiz name is a poison pill,” she told me.

From Los Angeles Times

Nagamori also warned against the use of "poison pills", which dilute the stakes of certain shareholders and defend against unwelcome bidders, saying that strong performance and high share prices should be the best defence.

From Reuters

“I told them that that was going to be a poison pill when it came to getting their legislation done over here,” Rogers, R-Ala., said this past week.

From Seattle Times

It marks the second such vote on a poison pill in Japan that excludes an investor, a so-called majority-of-minority vote, a practice some governance experts say could serve as a new weapon against shareholder activism.

From Reuters