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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.
Using a classic strategy aimed at fending off unwanted takeover attempts, Riverbed Technology has concocted a poison pill defense. The company announced that its board of directors unanimously ...
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
Following what it referred to as, "unusual and substantial activity in the Company's shares," Air Products & Chemicals has implemented a shareholder rights plan, whereby each Air Products ...
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 ...
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 ...
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