Flip-over pill

Flip-over pill,

Definition of Flip-over pill:

  1. Commonly used poison pill strategy that allows shareholders to purchase shares at an extremely discounted price in defense of hostile takeovers of an acquiring company. Flip-over pill can only be used if the bylaws of the company permits the strategy. If all shareholders purchase shares in the acquiring company, the equity interest of existing shareholders of the company are diluted and they are not allowed to participate in the discounted price purchasing.

Meaning of Flip-over pill & Flip-over pill Definition