where a company tries to stop a hostile takeover by issuing bonds that must be redeemed at a very high price The company employed a macaroni defence in anticipation of a hostile takeover. If the company is in danger, the redemption price of the bonds will expand like macaroni in a pot.
- macaroni defense
- Impress them by proposing a macaroni defence.
- Under a macaroni defence, the company issues a large number of bonds.