Thanks to the recent high-profile battle between Fuji Television Network Inc. and Internet service provider Livedoor Co. over control of Nippon Broadcasting System Inc., the phrase "poison pill" has become a household word even in Japan.
A poison pill is a defensive measure a company takes to make it less attractive for acquisition during a hostile-takeover attempt. The measure may include issuing new shares to existing shareholders to dilute the accumulated stake of a hostile bidder. The lesson from the Fuji-Livedoor battle has prompted many companies to consider whether to use a poison pill.
Even Toyota Motor Corp., whose massive aggregate market value makes it an unlikely target of any hostile-takeover bid, is reported to have considered various defensive measures.