Defense against a hostile acquisition which enacted by the board of directors provides shareholder the right to purchase common shares at a nominal cost upon the occurrence of a triggering event such as the acquisition of more than 10% of the company’s shares by a single party, partnership, or group.
Will Dearman is the Editor of TheStrategyBlog. His professional experience includes acquiring and later selling a portfolio of Internet-based companies as well as working as a credit underwriter in Bank of America's commercial middle market bank. His interests include finance, innovation, strategy and social technology. Find him on Twitter!