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Webster's New World Finance and Investment Dictionary » dead-hand poison pill
dead-hand poison pill
dead-hand poison pill definition - finance
A technique used to fight unwanted takeover attempts
that dilutes the stock holdings of an unwanted acquirer. The dead-hand poison
pill allows only members of the board of directors who were on the board of
directors when the poison pill provision was enacted, or their successors, to
redeem the poison pill rights, which gives them the rights to additional shares
of stock and makes it that much harder for the unwanted acquirer to gain control
of the company. It is a controversial provision that has been challenged in
some states.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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