Killer bee

Sathish M (Management Accountant) (40581 Points)

27 January 2016  

K-I-L-L-E-R  B-E-E-s

When an individual or firm helps a company fend off a takeover attempt it shall be construed as a "Killer Bee" strategy.

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.