Kamikaze Defense


DEFINITION of 'Kamikaze Defense '

A type of takeover defense mechanism sometimes resorted to by a company that is the target of a hostile bid. Kamikaze defense involves reshaping the target company - either by divesting substantial assets or by making unappealing acquisitions - so that its attraction to a corporate raider is greatly reduced. Kamikaze defense mechanisms include such aptly-named strategies as the "scorched earth" tactic, the "sale of crown jewels" strategy and the "fatman" maneuver.

BREAKING DOWN 'Kamikaze Defense '

Since they can inflict irreparable harm upon the target company, kamikaze defenses can be considered as strategies of last resort to prevent it from falling into hostile hands. The name is derived from the tactics used by Japanese suicide pilots in World War II.

  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Sale Of Crown Jewels

    A takeover-defense tactic that involves the sale of the target ...
  3. Fat Man Strategy

    A takeover defense tactic that involves the acquisition of a ...
  4. Shark Repellent

    Slang term for any one of a number of measures taken by a company ...
  5. Scorched Earth Policy

    A takeover prevention strategy in which the target company seeks ...
  6. Poison Pill

    A strategy used by corporations to discourage hostile takeovers. ...
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