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Old 11-04-2010, 02:31 PM   #15
mykalberta
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Quote:
Originally Posted by valo403 View Post
That's actually a really interesting question, it's possible they have a poison pill but BHP was going to be able to acquire sufficient shares to block the triggering. I don't know a lot about Canadian M&A, but the state of poison pills under Delaware law is in a bit of flux in regards to just how far a board can go when blocking takeover bids. Potentially any pill present here was left relatively weak out of fears of it being voided altogether at some point in the future. Then again, maybe a pill wasn't inserted out of a belief that a takeover would be blocked in the manner that this one has so far.
I hope they continue to allow poison pills. For an M&A to take over a company, bleed them dry then leave them with loads of debt is reason enough to allow poison pills. If there is enough shareholder revolt they can replace the board and install ones that will remove the poison pill.
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