poison pill
The term "poison pill" originated in the business world as a defense mechanism against hostile takeovers and has since been adopted in politics to describe strategies that make proposals less appealing.
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Definition
C1Corporate Finance
(technical, business)A defensive tactic used by a company's board to prevent a hostile takeover by making its stock less attractive to the acquirer.
Example
- The company adopted a poison pill strategy to thwart the hostile takeover bid.
- Implementing a poison pill can significantly dilute the shares of a potential acquirer.
C1Politics
(political)A provision in a bill that causes supporters to oppose it, making the bill less likely to pass.
Example
- The senator added a poison pill to the legislation, ensuring it would not get enough votes.
- Including controversial amendments acted as a poison pill, dooming the bill's success.
Similar
Terms that have similar or relatively close meanings to "poison pill":