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Definition of 'Fat Man Strategy '
A takeover defense tactic that involves the acquisition of a business or assets by a target company. The strategy is based on the premise that the bulked-up company - the "fat man" - would have reduced appeal to a hostile bidder, especially if the acquisition increases the acquirer's debt load or decreases available cash.
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Investopedia explains 'Fat Man Strategy '
This is a type of "kamikaze" defense tactic, which inflicts potentially irreversible damage on a company to prevent it from falling into hostile hands. However, it involves adding assets rather than divesting them as is the case with other kamikaze defense strategies. A disadvantage of this tactic is that acquisition candidates need to be identified well in advance of a hostile bid, otherwise there may be insufficient time to complete a fat man transaction.
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Search results for 'Fat Man Strategy'
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http://www.investopedia.com/articles/financial-theory/09/history-of-fraud.asp
... with Ferdinand Ward, an unscrupulous man who was ... had agreed to help them land fat
government contracts. ... Vanderbilt followed his previous strategy and used his ...
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