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Coming to terms with takeover lingo

Pac-Man defense: A tender offer by the target company for the securities of the orginal bidder. Shark repellent: Amendments to a potential target company's certificate of incorporation or bylaws devised to discourage unsolicited approaches from unwanted bidders.

Greenmail: The purchase of a substantial block of a target company's stock by a unfriendly suitor with the primary purpose of coercing the target company into repurchasing the block at a premium over the amount paid by the suitor.

Poison pill: A class of stock of the target company convertible upon consummation of any merger into the common stock of the acquiring company.

Source: ''Advisory Committee on Tender Offers - Report of Recommendations.''

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