Which poison pill strategy involves existing shareholders buying more shares at a discount?

The flip-in poison pill strategy is designed to allow existing shareholders to purchase additional shares at a discounted price when a triggering event occurs, such as a hostile takeover attempt. This mechanism effectively dilutes the ownership interest of the potential acquirer, making the takeover less appealing or more expensive. By allowing current shareholders to buy more shares at a lower cost, the strategy not only preserves the shareholders' investment but also complicates any tactic aimed at acquiring control of the company.

In contrast, the other strategies mentioned do not focus on enabling existing shareholders to increase their holdings in this manner. The flip-over poison pill allows current shareholders to buy shares of the acquiring company at a discount when a takeover occurs, while friendly poison pills may involve tactics that aim for a more amicable resolution to takeover bids. Neutral poison pills generally involve strategies that do not provoke any immediate defensive actions until a threat is confirmed, leaving existing shareholders unable to capitalize on discounts as the flip-in strategy allows. Thus, the essence of the flip-in poison pill lies in its emphasis on protecting and empowering existing shareholders through discounted share acquisition.