A poison pill is a defence tactic used by companies to prevent a hostile takeover from a person, people or another company whose aim is to take control of a company without board approval. If someone buys 15% or more of a company’s shares, the poison pill can activate, meaning other shareholders could get a discount on new shares, which would dilute the acquirer’s holding in the company, and therefore their ability to take control of it. Courts recognise poison pills as a valid defence against hostile takeovers.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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