shark repellent

shark repellent definition - finance
A measure designed to repel an unwanted takeover attempt. A supermajority provision, which requires a two-thirds majority instead of a simple majority to approve a takeover, is an example of one tactic. The company also might stagger the terms of the board members in order to make it more difficult for a potential raider to put his or her own slate of contacts in. Shark-repellent tactics might include poison pills and a scorched earth policy. See also poison pill and scorched earth policy.

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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