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A killer bee is a party who helps a company avoid a hostile takeover by another company. A killer bee is usually an investment banker. The killer bee devises strategies to make the company less attractive or much more difficult to acquire. Often, the killer bee will revise the company’s charter; in so doing, the killer bee may require the hostile party to spend an enormous amount of money upon takeover, to give current shareholders a large number of stock shares redeemable upon takeover, or to give the current management members very large benefits, etc. In the jargon of mergers and acquisitions, a killer bee is a type of shark repellent, meaning any device used to thwart a hostile takeover. |
