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 Glossary   >   M   >   "Macaroni defense" Definition   

        Macaroni defense

A tactic used by a company as defense against a hostile takeover bid involving the issue of a large number of bonds that must be redeemed at a higher value if the company is taken over.It is called a "macaroni defense" because the bonds" redemption price is said to expand like macaroni when cooked.

Macaroni defense


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Macaroni defense \ A tactic used by a company as defense against a hostile takeover bid involving the issue of a large number of bonds that must be redeemed at a higher value if the company is taken over.It is called a "macaroni defense" because the bonds" redemption price is said to expand like macaroni when cooked.


Macaroni defense / a tactic used by a company as defense against a hostile takeover bid involving the issue of a large number of bonds that must be redeemed at a higher value if the company is taken over.it is called a "macaroni defense" because the bonds" redemption price is said to expand like macaroni when cooked.