Beacon Roofing Supply on Tuesday adopted a poison pill defense to prevent a $11 billion hostile takeover by billionaire entrepreneur Brad Jacobs through his company QXO. The defense strategy creates a roadblock for Jacobs' attempt to become a big player in building products distribution through QXO,

Beacon Roofing Supply Inc. has adopted a poison pill defense as the building products company pushes back against a hostile takeover approach from QXO Inc.

M&A specialists are eyeing a robust list of U.S. takeover candidates, with a buoyant economy, strong buyer appetite and a potentially looser regulatory regime seen driving more deals.

As expected, QXO responded immediately following Beacon’s rights agreement announcement, calling the move “shareholder unfriendly” and a “poison pill” aimed at blocking QXO’s all-cash offer, which is set to expire at the end of Feb. 24..

QXO Inc. has launched a hostile takeover bid for Beacon Roofing Supply Inc. after the board of the building products company rejected its offer as too low.

Meanwhile, QXO maintains that its offer of $124.25 per share is 17% higher than the Beacon stock has ever traded; represents a 37% premium over the 90-day unaffected stock price; and represents a 26% premium to the stock the day before the Wall Street Journal’s Nov. 18 report that QXO was pursuing a deal.

Beacon Roofing Supply Inc. has started soliciting interest from potential buyers as it looks to fend off an $11 billion takeover bid from rival QXO Inc., people familiar with the matter said.