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A shareholder rights plan, colloquially known as a "poison pill", is a type of defensive tactic used by a corporation's board of directors against a takeover.. In the field of mergers and acquisitions, shareholder rights plans were devised in the early 1980s to prevent takeover bids by limiting a shareholder's right to negotiate a price for the sale of shares directly.
Last week, Nuance Communications adopted a "poison pill," aimed at diluting the voting powers of any shareholder who acquires more than 20% of the company's shares outstanding. Although the ...
When Barnes & Noble (BKS) enacted a poison pill measure that effectively prevented outside investors from amassing 20% or more of total company shares, it kicked off a long, acrimonious proxy ...
The plan, which some refer to as a "poison pill," aims to put the brakes on any hypothetical attempts to acquire the company. Burlington, Mass.-based Nuance Communications today announced what it ...
In this strategy, the target firm engages in tactics that might threaten the firm's existence to thwart an imposing acquirer's bids. This is also known as a "suicide pill", [1] and is an extreme version of the poison pill. [2]
A flip-over is one of five types of poison pills in which current shareholders of a targeted firm will have the option to purchase discounted stock after the potential takeover. Introduced in late 1984 and adopted by many firms, the strategy gave a common stock dividend in the form of rights to acquire the firm's common stock or preferred stock ...
Just last week, Bill Ackman resigned from the board of directors of J.C. Penney (NYSE: JCP), after several weeks of tense and arduous disagreement over the direction and leadership of the company.
If the potential acquirer triggers a poison pill by accumulating more than the threshold level of shares, it risks discriminatory dilution in the target company. The threshold level therefore effectively sets a ceiling on the amount of stock that any shareholder can accumulate before being required, for practical purposes, to launch a proxy contest