Flip-Over Pill

A type of poison pill strategy in which shareholders have the option to purchase shares in the acquiring company at a deeply-discounted price. A flip-over pill is a shareholder rights plan used as a defense against hostile takeovers, and is one of the more commonly-used poison pill strategies. The rights plan can be included in the bylaws of the company, meaning that it must be permitted by an acquiring company.

Poison pill rights are usually worthless, until a hostile takeover or merger plan comes into play. In the event of a potential or actual merger, the flip-over plan encourages all shareholders to purchase shares of the acquiring company, which would dilute the equity interest of existing shareholders in the acquiring company who are not permitted to participate.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Flip-in — The flip in is one of five main types of poison pills, and is a common part of many modern flip over poison pills. The flip in is a provision in the target company s corporate charter or bylaws. The provision gives current shareholders of a… …   Wikipedia

  • poison pill — poi·son pill n: a financial tactic or provision used by a company to make an unwanted takeover prohibitively expensive or less desirable Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. poison pill …   Law dictionary

  • Poison Pill — A strategy used by corporations to discourage hostile takeovers. With a poison pill, the target company attempts to make its stock less attractive to the acquirer. There are two types of poison pills: 1. A flip in allows existing shareholders… …   Investment dictionary

  • Poison pill — is a term referring to any strategy, generally in business or politics, to increase the likelihood of negative results over positive ones for a party that attempts any kind of takeover. It derives from its original meaning of a literal poison… …   Wikipedia

  • shareholder rights plan — poison pill, Also known as a shareholder rights plan. In the context of takeovers, action taken by the target to make itself unattractive to a bidder or potential bidder. Such action is restricted under the UK City Code on Takeovers and Mergers… …   Law dictionary

  • Takeover — This article is about the business term. For Takeover, see Takeover (disambiguation). For the science fiction series, see Hostile Takeover Trilogy . In business, a takeover is the purchase of one company (the target) by another (the acquirer, or… …   Wikipedia

  • ядовитая пилюля — Стратегия, используемая компанией, являющейся целью поглощения, для того, чтобы сделать свои акции менее привлекательными для покупателя. Например, компания может выпустить новые серии привилегированных акций (preferred stock), которые дают… …   Финансово-инвестиционный толковый словарь

  • Flipover — A flip over is one of five types of poison pills in which current shareholders of a targeted firm will have the option to purchase discounted stock after the potential takeover. Introduced in late 1984 and adopted by many firms, the strategy gave …   Wikipedia

  • Governorship of Mitt Romney — Willard Mitt Romney was sworn in as the 70th Governor of Massachusetts on January 2, 2003, along with Lieutenant Governor Kerry Healey. His term ended on January 4, 2007. He filed the papers establishing his exploratory presidential commmittee… …   Wikipedia

  • MythBusters (2005 season) — Country of origin Australia United States No. of episodes 26 (includes 7 specials) Broadcast Original channel Discovery Channel …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.