Quote:
Originally Posted by mykalberta
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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The concern in Delaware as far as I can tell, and I'm by no means an M&A expert, is based alrgely around boards who use the pills as a means to entrench themselves as opposed to protecting the company from raiders. The cases I've read largely focus upon the proportionality of the pill to the perceived threat that the hostile bid presents to the company, as well as lookign at the independence of the directors when adopting the pill provisions. It's an interesting area, one of the few that got you excited to go to class in the last year of law school. Each case seemed like a potential 'Wall St.' style movie script.