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Finance Dictionary and Glossary of Investment Terms
An extreme version of the poison pill defense in which a target company engages in an activity that might destroy the company in order to avoid a hostile takeover.
A hostile takeover prevention tactic that could destroy the target company. Taking on a large amount of debt to prevent the takeover might cause bankruptcy, for example.
A defensive strategy taken by a company to prevent a hostile takeover. However, the target company engages in an activity that may actually ruin the company, instead of merely halting the takeover. Also known as the "Jonestown Defense."