A poison pill is a takeover defense in which the target firm finds an acquirer more to its liking than the initial hostile acquirer and prompts the two to compete to take over the firm.

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A poison pill is a strategy used by a target company to make itself less attractive to a hostile acquirer, often by issuing new shares to dilute the acquirer's stake, not by finding a more favorable acquirer.

A Poison Pill Is a Takeover Defense in Which the Target