Pac-Man defense

American  

[pak-man] / ˈpækˌmæn /

noun

1. a defensive tactic against a hostile takeover in which the targeted company makes its own bid to take over the hostile firm.

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Etymology

Origin of Pac-Man defense

First recorded in 1980–85; after Pac-Man, a character in a video game that devours its attackers

Example Sentences

In 1982, Mr. Agee pursued a hostile acquisition of aerospace and building-materials company Martin Marietta that led to an early example of the so-called Pac-Man defense, in which the target turns around and tries to buy the acquirer.

From Seattle Times

For Tribune Publishing to enlist the so-called Pac-Man defense and gobble up its larger rival instead would be considerably more expensive.

From New York Times

The deal was a rare recent example of the notorious corporate finance maneuver called the “Pac-Man” defense, in which a company that is a target of a takeover fends off an unwanted bid by making a bid for its suitor.

From New York Times

Yet again, a business was acting for reasons other than building a better business, instead preferring to play a kind of “Pac-Man” defense.

From New York Times

In business and legal circles, a “Pac-Man” defense is now known as a strategy in which companies targeted for hostile takeovers try to gobble up their opponents before they are eaten themselves.

From New York Times