DEFINITION of 'protection of macaroni' Information:
Protection of Macaroni - one of many approaches which the company can accept to prevent undesirable acquisition or hostile absorption. Absorption are quite widespread, but in many cases, the target company is incited against him because it believes that the offer - too low or other reasons. There are many priority or jet protective strategy which management can use during activity of merge and acquisition, and almost all these strategy are aimed at influence of value of share price of the purpose or corporate bonds in Protection of Macaroni.
In Protection of Macaroni the target company lets out a large number of communications with a condition, they have to be expiated at the high price if the company is accepted. Release has to be rather big to frighten off the robber.
2019 - Protection of macaroni
Protection of macaroni, Information - 2019
DESTRUCTION of 'protection of macaroni' Information:
Why it is called Protection of Macaroni? As if the bidder tries to buy the company, strategy, that the company can burden itself with too large number of a debt and experience difficulties at creation of payment of percent even if it successfully dissuades absorption. The target companies of absorption can use also strengthened recapitalization to make themselves less attractive to the firm offering the price.
Other methods to prevent hostile absorption include golden parachute, green mail, people a tablet and poison a tablet.
Example of blocking of hostile absorption
In July, 2015 the universal pharmaceutical company Mylan tried to block the hostile absorption offered by the Israeli company Teva Pharmaceutical industries, having created independent Dutch fund, Stichtinga Preferreda Sheyrsa Mylan. The fund could let out or acquire the preferred Mylan's shares when he considered, his interests of interested party were in danger. Preferred Sheyrs planned the Stichting to use his electoral rights to oppose the Teva offer after implementation of an option to acquire the preferred shares in Milan and granting opportunity him to own a half of the company. Some days later Teva took away the offer on Mylan after he reached the agreement with Allergan to get Unlicensed means of Allergan.
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