What it is:
Killer bees can save the day for shareholders of targets. By devising ways to defend companies from
The gets its name from a type of bee that aggressively attacks perceived threats.
How it works/Example:
Let's assume that Company ABC wants to purchase Company XYZ. Company XYZ's board does not want to sell the company to Company ABC, but Company ABC is threatening a hostile takeover.
Company XYZ calls its investment bank, which acts as a killer bee and devises a few methods to ward off Company ABC. It comes up with the Pac-Man defense and the Jonestown defense, which you can read about in the InvestingAnswers.com dictionary. The killer bee helps Company XYZ amend its corporate charter and implement the anti-takeover defenses. Company ABC calls off its acquisition efforts.