Antitakeover is a term used in business to describe actions taken by a company to prevent a hostile takeover by another company or investor. This is done to protect the company’s interests and ensure that it remains in control of its own operations.
Definitions
Antitakeover refers to a set of measures that a company takes to prevent a hostile takeover by another company or investor. These measures can include things like issuing new shares to dilute the ownership of the hostile bidder, implementing a poison pill strategy, or seeking out a white knight to acquire the company instead.
Origin
The term antitakeover has been in use since the 1980s, when hostile takeovers became more common in the business world. Companies began to develop strategies to protect themselves from these takeovers, leading to the development of the antitakeover measures we see today.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, antitakeover refers to “measures taken by a company to prevent a takeover attempt by another company.”
The Oxford English Dictionary defines antitakeover as “actions taken by a company to prevent a takeover by another company or investor.”
Associations
Antitakeover measures are often seen as defensive strategies that companies use to protect themselves from hostile takeovers. They can be controversial, as some investors may see them as a way for companies to entrench themselves and avoid accountability to shareholders.
Synonyms
Some synonyms for antitakeover include takeover defense, anti-takeover measures, and defensive strategies.
Antonyms
Antonyms for antitakeover could include takeover, acquisition, or merger.
The same root words
There are no significant root words for antitakeover, as it is a compound term made up of the prefix “anti-” and the noun “takeover.”
Example Sentences
- The board of directors implemented several antitakeover measures to protect the company from a hostile bid.
- The company’s poison pill strategy was successful in preventing a takeover by a rival firm.
- Shareholders criticized the company’s antitakeover measures, arguing that they were designed to entrench management and limit shareholder value.
Antitakeover measures are an important part of modern business strategy, as companies seek to protect themselves from hostile takeovers and remain in control of their own operations. While these measures can be controversial, they are often seen as necessary to ensure that companies can continue to operate in the best interests of their shareholders and stakeholders.