<ul><li>A poison pill, or shareholder rights plan, is an antitakeover device used by companies to deter hostile takeovers.</li><li>It works by issuing new stock to existing shareholders at a discounted rate, diluting the ownership stake of potential acquirers.</li><li>There are different types of poison pills, including flip-in and flip-over provisions, as well as dead-hand provisions.</li><li>While poison pills can offer companies time and leverage, they may also protect management at the expense of shareholders and lead to legal battles.</li></ul>

Swallow This, Carl Icahn: The Curious Case of the Corporate Poison Pill Picture this: You’re a cozy…

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