What is the meaning of Scorched-earth policy?

Often used in risk arbitrage. Any technique a company that has become the target of a takeover attempt uses to make itself unattractive to the acquirer. For example, it may agree to sell off its crown jewels, or schedule all debt to become due immediately after a merger.

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APABarry Goldsmith. (2010). scorched-earth policy. Retrieved September 28, 2026, from http://smartdefine.org/scorched-earth_policy/definitions/1162986
ChicagoBarry Goldsmith. 2010. "scorched-earth policy" http://smartdefine.org/scorched-earth_policy/definitions/1162986 (accessed September 28, 2026).
HarvardBarry Goldsmith 2010, scorched-earth policy, Smart Define, viewed 28 September, 2026, <http://smartdefine.org/scorched-earth_policy/definitions/1162986>.
MLABarry Goldsmith. "scorched-earth policy" 21 October 2010. Web. 28 September 2026. <http://smartdefine.org/scorched-earth_policy/definitions/1162986>
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