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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.
There are a variety of entrenchment practices that managers may employ, such as poison pills, super majority amendments, anti-takeover devices, or the so-called golden parachutes. [4] Poison pills - There are two types of poison pills: 1. A "flip-in" allows existing shareholders (except the acquirer) to buy more shares at a discount. 2.
Poison pill may refer to: Suicide pill, a physical pill for suicide by poison; Poison pill amendment or wrecking amendment, an addition to a legislative bill that renders it ineffective; Shareholder rights plan, also called a poison pill, a subclass of anti-takeover provisions that dilutes the attacker's power
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 ...
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.
Plano, Texas-based J.C. Penney announced what it's calling a "short-term stockholder rights" plan Thursday. The plan, which is of the sort commonly referred to as a "poison pill," aims to put the ...
Third Point Addresses Sotheby's Adoption of a Poison Pill - A Relic from the 1980's NEW YORK--(BUSINESS WIRE)-- Third Point is disappointed that Sotheby's (NYS: BID) Board of Directors has trotted ...
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 ]