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Legal barrier erected to prevent a takeover attempt from becoming successful. For example, a target company may appeal to the state legislature to pass laws preventing the takeover. Or the company may embark on a Scorched-Earth Policy, making the company unappealing to the suitor. See also Shark Repellent.

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Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more