Kamikaze Defense

Posted in Finance, Accounting and Economics Terms, Total Reads: 588
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Definition: Kamikaze Defense

It is a type of defence mechanism used by the target company of a hostile takeover to prevent itself being acquired by another company. In achieving its purpose, the company resorts to detrimental actions like selling the most important assets, acquiring some other random company or other such activities to make itself un attractable to others.


This is almost like a suicidal activity wherein the company can be impacted very badly. Hence it is highly risky and considered to be an option of last resort.


The name is derived from the inspiration of the suicidal activity of the Japanese pilots during the World War II.

 

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