Poison Pills
It refers to the target company of hostile acquisitions to reduce the value of the company in the acquisition of the company, it is often effective when dealing with hostile acquisition. The poisonous pill plan is the famous Martin Lipton in the United States in 1982, the initial form is very simple, the target company issued a preferred stock to ordinary shareholders, once the company was acquired, shareholders held priority Shares can be converted to a certain amount of acquirer stock.
Golden Parachute
It is a special compensation for the company to give executives. "Gold" means that compensation is rich, "parachute" means that the executive can be smoothly transitioned in the change of mergers. The target company made a golden definition arrangement for executives and triggered it during hostility, and its purpose is to increase the cost of acquisition, increasing the difficulty of acquisitions to deal with anti-acquisition.
Greenmail
Refers to the target company premium to acquire the company's stock to prevent the enemy to acquire.
Substorming Agreement (Standstill Agreement)
It means that the target company has reached an agreement with potential acquirers, and the purchase will no longer increase the stock of the target company for a while, and if you need to sell these stock target companies, there is a choice of priority purchase.
White Knight
It is a buyer that the target company is more willing to accept. Target companies seek friendly company's help when they are facing the threat of acquisitions, friendly company is the White Knight.
White Knights often promise to not disband the company or non-resignation management and other employees, the target company will provide a more favorable share price to the White Knight.
White Squire
It is a very similar anti-acquisition measure with the Cape Knight. Here, it is not the sale of the company's controlled rights to friendly companies, but transfer the company's large proportion of stocks to friendly companies.
Capital Structure Change
Mainly refers to the ability to enhance the company's anti-acquisition by adjusting the capital structure of the target company to enhance the company's anti-acquisition. There are four main forms of capital structural changes, namely capital structural adjustments, increase debt, purchase stocks, and repurchase stocks.
Pac-Man Defense
According to a popular TV series in the United States, the characters in the play will try their best before eating themselves. In the anti-acquisition, it means that the target company responds to its own acquisition at the way of acquisition attackers. Due to its extreme, this approach is often considered to be "the end of the world".
