scorched earth policy

Popular Terms
Defense maneuver against hostile takeover attempt designed to make the target firm unattractive, such as by selling off its most valuable assets and/or scheduling its entire debt to become due upon a merger. It takes its name from the Chinese guerilla warfare tactic (called 'jiaotu' or 'zhèngcè') of burning or destroying everything that might be of any use to an invading enemy.


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