Macaroni Defense

What is ‘Macaroni Defense’

An approach taken by a company that does not want to be taken over. The company issues a large number of bonds with the condition they must be redeemed at a high price if the company is taken over.

Explaining ‘Macaroni Defense’

Why is it called Macaroni Defense? Because if a company is in danger, the redemption price of the bonds expands like Macaroni in a pot!

Further Reading

  • E. Banks, The Palgrave Macmillan Dictionary of Finance, Investment and BankingĀ© Erik Banks 2010 – link.springer.com [PDF]
  • Guns into butter, Soviet style – www.tandfonline.com [PDF]
  • The Macaroni parson and the Marvellous boy: – www.tandfonline.com [PDF]
  • The Masonic Moment; Or, Ritual, Replica, and Credit: John Wilkes, the Macaroni Parson, and the Making of the Middle-Class Mind – www.jstor.org [PDF]
  • Regional adaptation to economic crisis in Russia: The case of Novgorod oblast – rsa.tandfonline.com [PDF]
  • Defense Economic Impact Modeling System (DEIMS). A New Concept in Economic Forecasting for Defense Expenditures. – eric.ed.gov [PDF]