Investment dictionary

MACARONI DEFENSE

Macaroni Defense: translation

An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is taken over.

Why is it called Macaroni Defense? Because if a company is in danger, the redemption price of the bonds expands like Macaroni in a pot!

  1. macaroni defense—macaroni defense translation A tactic used by a corporation that is the target of a hostile takeover bid involving the issue of a large number of bonds that must be redee...Financial and business terms
  2. macaroni defense—фин. упр. амер. макаронная защитаu тактика предотвращения враждебного поглощения заключающаяся в выпуске облигаций которые в случае поглощения компании должны будут погаш...Англо-русский экономический словарь