poison pill

[ poi-zuhn pil ]

noun

1. Also called su·i·cide pill. a pellet or capsule of a quick-acting poison, as cyanide, for a spy to ingest when faced with capture or torture.
2. Financial Slang. any of various business devices created to prevent a company from being taken over by another, as issuing a new class of stock or stock warrants that would become costly to the buyer in the event of a takeover.

poison pill

noun

1. finance a tactic used by a company fearing an unwelcome takeover bid, in which the value of the company is automatically reduced, as by the sale of an issue of shares having an option unfavourable to the bidders, if the bid is successful

Word History and Origins

Origin of poison pill¹

First recorded in 1945–50

Example Sentences

But he concocted a nutty “poison pill” that would have automatically killed the Democrats’ own anti-crime legislation if Proposition 36 was approved by voters.

From Los Angeles Times

Another reason for Democrats inserting the poison pill is that it would give fellow Democratic Atty.

From Los Angeles Times

But some in the party cynically intend to insert a “poison pill.”

From Los Angeles Times

The proposal has been described as a “poison pill” in the fractured Ohio House, where Republicans rely on Democratic votes for pass some legislation.

From Seattle Times

The Ohio Senate passed a bill, but only after adding what Democrats viewed as a poison pill that would have banned foreign nationals from contributing to campaigns for or against ballot measures.

From Salon