Anti-takeover – Definition & Meaning

Conclusion

Anti-takeover is a term used to describe a set of measures that a company can take to protect itself from being taken over by another company. These measures are designed to make it difficult or unattractive for a potential acquirer to take control of the company.

Definitions

Anti-takeover refers to a range of strategies and tactics employed by a company to prevent a hostile takeover. These strategies may include issuing preferred stock, implementing poison pills, and adopting golden parachutes for executives.

Origin

The concept of anti-takeover measures emerged in the 1980s, during a period of intense corporate mergers and acquisitions. Companies began to realize that they needed to protect themselves from hostile takeovers, which could result in the loss of control and potentially harm the company’s interests.

Meaning in different dictionaries

According to Merriam-Webster, anti-takeover is defined as “a defensive strategy designed to prevent a takeover of a corporation by another corporation or group of investors.” The Oxford English Dictionary defines it as “the use of defensive measures by a company to prevent a hostile takeover.”

Associations

Anti-takeover measures are often associated with corporate governance and shareholder rights. Some investors argue that these measures can be used to entrench management and limit shareholder influence.

Synonyms

Some synonyms for anti-takeover include takeover defense, poison pill, and golden parachute.

Antonyms

There are no direct antonyms for anti-takeover. However, some might argue that the opposite of anti-takeover is a company that is open to being acquired or merged with another company.

The same root words

The root words for anti-takeover are “anti” and “takeover.” “Anti” means against or opposed to, while “takeover” refers to the acquisition of one company by another.

Example Sentences

  1. The company implemented a poison pill to make a hostile takeover more difficult.
  2. The CEO received a golden parachute as part of the company’s anti-takeover measures.
  3. Shareholders criticized the company’s anti-takeover measures, saying they limited shareholder influence.

Anti-takeover measures are an important part of corporate governance and can help protect a company from hostile takeovers. However, they can also be controversial and limit shareholder influence. Companies must strike a balance between protecting their interests and maintaining good corporate governance practices.

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