Shareholder rights plan

A shareholder rights plan, often called a "poison pill," is a strategy used by a company to protect itself from hostile takeover attempts. It allows existing shareholders to buy additional shares at a discount if an outsider acquires a large stake, diluting the potential acquirer's ownership and making the takeover more expensive. This gives the company and its board more time to evaluate offers and negotiate, helping to prevent unwanted changes in management or strategy. Essentially, it's a defensive measure ensuring the company can maintain control and make decisions that align with its long-term interests.