Killer Bees

AAA

DEFINITION of 'Killer Bees'

An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an attempted hostile takeover from occurring. Companies use a variety of anti-takeover measures, sometimes referred to as shark repellents, to discourage unfriendly takeover attempts from happening. Once an unfriendly takeover attempt has been initiated, the company can use other anti-takeover measures to deter or prevent the takeover.


The use of killer bees is one anti-takeover measure that a company can employ. Other tactics include the white knight – a more friendly acquiring company willing to enter the bidding war; the standstill agreement – a negotiated agreement that limits the takeover company's holding in the target company; the Pacman defense – the target company makes a takeover bid for the stock of the bidding company; and litigation – to delay a takeover attempt.

INVESTOPEDIA EXPLAINS 'Killer Bees'

The merger and acquisition boom of the late 1980s forced companies to develop strategies to thwart would-be takeovers. Killer bees, named for the insect that aggressively swarms and overpowers its victims with hundreds of stings, act aggressively on behalf of a firm that is under the threat of an unfriendly or hostile takeover. The killer bee may employ tactics such as making the target company less attractive or more difficult to acquire.

RELATED TERMS
  1. Lobster Trap

    A strategy used by a target firm to prevent a hostile takeover. ...
  2. White Knight

    A white knight is an individual or company that acquires a corporation ...
  3. Hostile Takeover

    The acquisition of one company (called the target company) by ...
  4. Investment Banker

    An individual who works in a financial institution that is in ...
  5. Pac-Man

    A high-risk hostile takeover defense in which the target firm ...
  6. Poison Pill

    A strategy used by corporations to discourage hostile takeovers. ...
Related Articles
  1. Mergers And Acquisitions: Understanding ...
    Fundamental Analysis

    Mergers And Acquisitions: Understanding ...

  2. Mergers & Acquisitions: An Avenue For ...
    Forex Education

    Mergers & Acquisitions: An Avenue For ...

  3. The Buy-Side Of The M&A Process
    Mutual Funds & ETFs

    The Buy-Side Of The M&A Process

  4. The Wonderful World Of Mergers
    Insurance

    The Wonderful World Of Mergers

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center