As a variation of the poison pill defense, the people pill is an anti-takeover defense under which the current management team of the target company threatens to quit en masse in the event of a successful hostile takeover.
The effectiveness of a people pill is dependent on the circumstances of the takeover. If the management team is efficient, the company will be left without experienced leadership following a takeover. On the other hand, a great number of takeovers are the result of inefficient leadership in which management will be fired anyway; the people pill will be ineffective in this situation.
Famous quotes containing the words people and/or pill:
“Those are the people that sing
when they aren’t quite
sure.”
—Anne Sexton (1928–1974)
“Andrews: Do you mind if I ask a question frankly? Do you love my daughter?
Peter: Any guy that’d fall in love with your daughter ought to have his head examined.
Andrews: Now that’s an evasion.
Peter: She grabbed herself a perfect running mate. King Westley! The pill of the century. What she needs is a guy that’d take a sock at her once a day, whether it’s coming to her or not.”
—Robert Riskin (1897–1955)