A more thorough explanation:

Takeover defense refers to measures taken by a company to prevent hostile takeover attempts. This can be done through legal mechanisms or financial/operational transactions that make it more difficult for a potential bidder to acquire the company.

This is a legal mechanism that a company can adopt to prevent future takeover bids without affecting its financial or operational status. For example, a company may adopt a provision in its bylaws that requires a supermajority vote for any acquisition or merger.

This involves financial or operational transactions that make it more difficult for a potential bidder to acquire the company. Examples include:

• Issuing new shares of stock to dilute the value of existing shares and make it more expensive for a bidder to acquire a controlling stake.
• Acquiring expensive assets that increase the company's value and make it less attractive for a bidder to acquire.
• Adopting a poison-pill defense, which involves issuing new shares of stock to existing shareholders at a discounted price if a hostile takeover attempt is made. This makes it more expensive for the bidder to acquire a controlling stake.

These examples illustrate how a company can use financial and legal strategies to prevent hostile takeover attempts and protect its interests.