| A | B |
|---|
| shark | class of stockholder seeks to take over companies for profit (it drives the price of the stock they own up) |
| shark repellent | anti-takeover tactics used by companies/managers |
| shark repellent/anti-take over methods controversy | appear to serve the needs of mgrs rather than the firm's owners |
| scorched earth | sell off key assets in an effort to purposely make the business unattractive to sharks |
| crown jewels | most desireable assets of a company that are sold off to prevent sharks |
| white knight | to avoid a hostile takeover, mgrs approach a 3rd company about acquisition. To induce such a sale, the targeted firm's stock is offered on very favorable terms. |
| white squire | when a friendly firm only buys a portion of the corp. |
| greenmail | a financial inducement offered by the threatened firm to stop a shark from acquiring it. "blackmail" |
| golden parachute | a high pay pkg promised to executives fired as a result of a takeover. Sharks are repelled by the idea of mgmt leaving en masse w/ large sums of cash |
| poison pill | any # of devices amined at reducing the worth of a company once it has been taken over. most popular form of shark repellent; so many ways to sabotage the future operations of a business |
| pac-man | defense based on trying to consume the hunting shark before it attacks. can set up a bidding war that drives up the prices of both firms; the winner can be saddled w/ more debt than it can hope to service. |
