Shark Repellent

Shark Repellent
Slang term for any one of a number of measures taken by a company to fend off an unwanted or hostile takeover attempt. In many cases, a company will make special amendments to its charter or bylaws that become active only when a takeover attempt is announced or presented to shareholders with the goal of making the takeover less attractive or profitable to the acquisitive firm.

Also known as a "porcupine provision".

Most companies want to decide their own fates in the marketplace, so when the sharks attack, shark repellent can send the predator off to look for a less feisty target.

While the concept is a noble one, many shark repellent measures are not in the best interests of shareholders, as the actions may damage the company's financial position and interfere with management's ability to focus on critical business objectives. Some examples of shark repellents are poison pills, scorched earth policies, golden parachutes and safe harbor strategies

Investment dictionary. . 2012.

Look at other dictionaries:

  • shark repellent — shark re·pel·lent / ri pe lənt/ n: any measure taken by a corporation to discourage a hostile takeover attempt Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Shark repellent — A shark repellent is any method of driving sharks away from an area, object, person, or animal. Shark repellents are one category of animal repellents.OverviewShark repellents have been of interest to human beings for many years, for a number of… …   Wikipedia

  • shark repellent — Often used in risk arbitrage. Examples are golden parachutes , poison pills , safe harbor, and scorched earth policy. porcupine provision. Amendment to company charter intended to protect it against takeover. Bloomberg Financial Dictionary * * *… …   Financial and business terms

  • shark repellent — noun a measure undertaken by a corporation to discourage unwanted takeover attempts • Syn: ↑porcupine provision • Hypernyms: ↑measure, ↑step • Hyponyms: ↑golden parachute, ↑greenmail, ↑ …   Useful english dictionary

  • shark repellent — n. something that prevents corporate takeovers. (Securities markets.) □ Acme Systems tried again to get its board to approve a shark repellent to keep the Widget cartel from acquiring it. □ The shark repellent wasn’t enough …   Dictionary of American slang and colloquial expressions

  • shark repellent — noun Date: 1977 any of various measures that a company uses to fend off unwanted takeover attempts …   New Collegiate Dictionary

  • shark repellent — 1) a chemical compound that discourages sharks from attacking humans 2) a measure undertaken by a corporation to discourage unwanted takeover attempts …   Dictionary of ichthyology

  • shark repellent — any tactic used by a corporation to prevent a takeover by a corporate raider. [1980 85] * * * …   Universalium

  • shark repellent — methods used by company management to ward off attempts at a hostile takeover (Finance) …   English contemporary dictionary

  • shark repellent —  Any measure taken by a company to avoid a takeover attempt.  See also poison pill …   American business jargon

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