Poison Put

Knowledge Center

What is a Poison Put? Meaning.

A Poison Put in Corporate Finance is a provision in a corporate bond or note that gives its holder the option of redeeming the bond or note at its (high) par value if certain events occur. These events may include a restructuring, the payment of a large dividend or an unfriendly takeover.

Poison-put bonds can act as an anti-takeover mechanism because they discourage acquiring companies by raising their expenses.

They also protect the bondholder from the deterioration of credit quality and credit rating that might result from a leveraged buyout that added to the issuer’s debt.

Forum - Poison Puts   Discussions about Poison Puts. Poison Puts Cases and Examples Hi, do you know of a remarkable case or an interesting example of how poison puts were used?Please enter a reaction to s (...)

List of Anti Hostile Takeover Mechanisms

Return to Management Hub: Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 

This ends our Poison Put summary and forum.