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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.
The Bull-dog Sauce Case is a Supreme Court of Japan case that resulted in a landmark decision regarding hostile takeover defense plans (such as the shareholder rights plan or "poison pill"). The Court held that such plans do not necessarily violate the principle of shareholder equality under Japanese statutes, even if they result in ...
On Monday, Hertz Global Holdings publicly announced the implementation of a "shareholders rights plan." Also known as the "poison pill defense," the plan, which received the approval of the ...
The Jonestown defense is an extreme corporation defense against hostile takeovers. 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]
Twitter’s board of directors hastily approved a poison pill agreement in the wake of Elon Musk’s unsolicited $43 billion takeover bid that surfaced Thursday. The “limited duration ...
The move comes days after Riot Platforms disclosed it had built a 12% stake in Bitfarms as it pursues a takeover attempt. Riot had offered to buy Bitfarms for about $950 million last month.
Hostile takeovers can cause a lot of disruption for the target company and its employees. It can lead to massive layoffs, as the acquirer looks to cut costs and boost profitability.
Unitrin, Inc. v. American General Corp., 651 A.2d 1361 (Del. 1995) is the leading case on a board of directors' ability to use defensive measures, such as poison pills or buybacks, to prevent a hostile takeover.