The most effective defense against a hostile takeover is the poison pill strategy.

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The poison pill strategy is a popular takeover defense tactic that was initially developed in the 1980s. The technique involves creating a defense mechanism that makes a company's stock less attractive to the acquiring firm, thereby deterring them from pursuing the takeover. The strategy works by making the target company's shares less valuable or diluting the value of those shares by flooding the market with new shares. Ultimately, this strategy discourages the acquiring firm from attempting to take over the target company.

The Most Effective Defense Against a Hostile Takeover Is the Poison