To defend against a takeover attempt, a company can promise to give its sharehold?ers the right to buy additional shares at low prices.

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This anti-takeover defense strategy is known as a "poison pill" and involves the company offering its shareholders the right to purchase additional shares at a discounted price in the event of a takeover attempt. This makes the acquisition more expensive and less attractive to the acquiring company.

To Defend Against a Takeover Attempt, a Company Can Promise