What is the common term for strategies employed to fend off hostile takeover attempts?

The term "shark repellent" is commonly used to describe strategies that companies implement to deter hostile takeover attempts. This term evokes the image of a shark being kept at bay, just as companies aim to fend off unwanted acquirers. Shark repellents can take various forms, including amendments to corporate bylaws, shareholder rights plans (often referred to as "poison pills"), and other measures designed to make a company's stock less attractive or more difficult to acquire.

Understanding this concept is critical because hostile takeovers can significantly impact a company's management and operational strategies. By employing shark repellents, a company aims to protect its interests and maintain control over its decision-making processes. These tactics are initiated to preserve the current leadership structure and strategy, ensuring stability within the company.

The other terms, while they may describe aspects of corporate strategy or defenses, do not specifically refer to the common terminology utilized in the context of thwarting hostile takeovers. Hence, "shark repellent" distinctly captures the essence of defensive measures against takeover bids.