People Pill

Description of People Pill. Explanation.

Definition People Pill. Description.

A People Pill is an anti-takeover mechanism whereby the entire existing management team of the target company threatens to resign en block in the event of a successful hostile takeover, thereby leaving the company without experienced leadership.

If the management team is running the company well, this mechanism will harm the target company if the takeover is successful. However, takeovers are often initiated as a result of poor management. This mechanism is ineffective in this situation.

Compare with: Anti Hostile Takeover Mechanisms  |  Killer Bees  |  White Knight

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End of description People Pill. An explanation.