KILLER BEES

Today's word: KILLER BEES
Theme for this fortnight: MERGERS & ACQUISITIONS

 

       

An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an attempted hostile takeover from occurring. Companies use a variety of anti-takeover measures, sometimes referred to as shark repellents, to discourage unfriendly takeover attempts from happening. Once an unfriendly takeover attempt has been initiated, the company can use other anti-takeover measures to deter or prevent the takeover.

       The merger and acquisition boom of the late 1980s forced companies to develop strategies to thwart would-be takeovers. Killer bees, named for the insect that aggressively swarms and overpowers its victims with hundreds of stings, act aggressively on behalf of a firm that is under the threat of an unfriendly or hostile takeover. The killer bee may employ tactics such as making the target company less attractive or more difficult to acquire.